Purple Corporation Makes a Property Distribution to Its Sole Shareholder

question 15

Multiple Choice

Purple Corporation makes a property distribution to its sole shareholder, Kyung. The property distributed is a house (fair market value of $189,000? basis of $154,000) that is subject to a $245,000 mortgage that Kyung assumes. Before considering the consequences of the distribution, Purple's current E & P is $35,000 and its accumulated E & P is $140,000. Purple makes no other distributions during the current year. What is Purple's taxable gain on the distribution of the house?

• A) $0
• B) $21,000
• C) $35,000
• D) $91,000
• E) None of the above

---

Definitions:

Nursing Station

A dedicated area within a healthcare facility where nurses perform administrative tasks, coordinate care, and communicate with team members.

Patient Names

Identifying information used in healthcare settings to accurately identify, document, and communicate about individuals receiving care.

Communicable Diseases

Illnesses that are spread from one person to another or through the environment, via infectious agents.

Personal Protective Equipment

Clothing or gear designed to protect individuals from specific hazards and health risks in the environment or workplace.