Question 16 Peach Tree Corp, has accumulated earnings and profits (E&P) of $2.030,000 and no current E&P for the current year. On December 31st Peach Tree Corp, distributes to Grape, its sole shareholder a parcel of land with a basis of $1,885,000 and a fair market value of $1,450,000. Grape's basis in the stock is $725,000. Grape plans on growing fruit trees on this land. What portion of the distribution to Grape will be treated as a dividend? Note: do not adjust earnings and profits for the tax effect of any gains or losses due to the distribution $1450.000 51.385.000 5725.000 5435.000