Parrnell Corporation owns 25% of Cross Corporation's stock. On May 1, Cross Corporation, with current E & P of $75,000, distributes land (fair market value of $235,000; basis of $200,000) to Parrnell . The land is subject to a liability of $150,000, which Parrnell assumes.

a.Parrnell Corporation has dividend income of $____________ and a dividends received deduction of $___________

b.Overall, Cross Corporation's E & P after the distribution isreducedby $______________