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Required information [The following information applies to the questions displayed below.] Wolverine Corporation made a distribution of $500,000 to Deer Incorporated in partial liquidation of the company on December 31 of this year. Deer owns 100 percent of Wolverine Corporation. The distribution was in exchange for 50 percent of Deer's stock in the company. At the time of the distribution, the shares had a fair market value of $200 per share. Deer's tax basis in the shares was $50 per share. Wolverine had total E\&P of $8,000,000 at the time of the distribution. What are the amount and character (capital gain or dividend) of any income or gain recognized by Deer because of the partial quidation? Required information [The following information applies to the questions displayed below.] Wolverine Corporation made a distribution of $500,000 to Deer Incorporated in partial liquidation of the company on December 31 of this year. Deer owns 100 percent of Wolverine Corporation. The distribution was in exchange for 50 percent of Deer's stock in the company. At the time of the distribution, the shares had a fair market value of $200 per share. Deer's tax basis in the shares was $50 per share. Wolverine had total E\&P of $8,000,000 at the time of the distribution. b. Assuming Wolverine made no other distributions to Deer during the year, by what amount does Wolverine reduce its total E\&P because of the partial liquidation

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