s. Corporation owns 30% of Fresia Corporation's stock. On. November 15, Freska Corporation, with current E 8 D of $320,000, distributes nd (fair market value of $100,000; basis of $160,000 ) to Irisi. The land is subject to a liability of $80,000, which lris jssumes. lick here to viow the Dividend Recesved Deduction Fable. a. How is iris corporation taxed on the distribution? Iris Corporation has dividend income of 5 has a bades of 5 in the land. Freobick: * check My Wack: Although most corporate distributions are cashy, a corporation may distribute a property dividend for various reasons. The shareholders could war a particular property that is held by that corporation, Similarly, a corporation with low cush rossuvea may still want to distributa a dlvidend to ita 1hamenoideis, Property distributions hatve the same impact as disteibutions of cash except for the offects attributabien to any difference betweon the basts and the tair market value of the distributed property: 4. What is Fresia Corporation's E S. P.after the distributien? x