Purple Corporation Makes a Property Distribution to Its Sole Shareholder,Paul

question 98

Multiple Choice

Purple Corporation makes a property distribution to its sole shareholder,Paul.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 Paul 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

Identify key factors that facilitate the identification of marketing opportunities.

Understand the impact of the political/legal environment on business practices and consumer protection.

Understand the concept and applications of superordinate goals in reducing intergroup conflict.

Differentiate between various types of group cohesion and their effects on group dynamics.