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Plainwell Ice Cream Corporation distributed property with a $300,000 fair market value and $20,000 adjusted basis to Luis, one of its shareholders. The property was

Plainwell Ice Cream Corporation distributed property with a $300,000 fair market value and $20,000 adjusted basis to Luis, one of its shareholders. The property was subject to a $150,000 mortgage, which Luis assumed. Plainwell Ice Cream Corporation E & P is $200,000.

  1. How much of the property distribution is treated as dividend income, if any?

  1. How much gain, if any, does Plainwell Ice Cream Corporation recognize?

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