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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
44.            Â
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.
a.     How is Iris Corporation taxed on the distribution?
b.    What is Fresia Corporation’s E & P after the distribution?
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