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Pelican Corp as AEP of $300,000. Its CEP before distributions is negative ($100,000). On December 31 Pelican distributes land with FMV of $600,000 and basis

Pelican Corp as AEP of $300,000. Its CEP before distributions is negative ($100,000). On December 31 Pelican distributes land with FMV of $600,000 and basis of $200,000 to its sole shareholder Paul. The land is subject to a liability of $500,000. Paul has stock basis of $85,000. What is the effect of the distribution on Pelican and Paul

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