Iris Corporation owns 30% of Fresia Corporation’s stock. On November 15, Fresia Corporation, with current E & P of $320,000, distributes land (fair mar- ket value of $100,000; basis of $160,000) to Iris. The land is subject to a liability of $80,000, which Iris assumes. How is Iris Corporation taxed on the distribution? What is Fresia Corporation’s E & P after the distribution?

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