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
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Purple Corporation makes a property distribution to its sole shareholder, Paul. The property distributed is a house (fair market value of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The inventory costing method that reports the earliest costs in ending inventory is a. weighted average b. specific identification c. LIFO d. FIFO
Answers (1)
Nettie can produce either 8 cupcakes or 4 hamburgers. becky can produce either 4 cupcakes or 8 hamburgers. suppose that nettie and becky each specialize in the production of the good for which they have a comparative advantage and decide to trade.
Answers (1)
hat is the journal entry Pogrund makes to record the receipt of the $10,000 good faith deposit on December 31, 2019?
Answers (1)
T the beginning of the year, Addison Company's assets are $300,000 and its equity is $100,000. During the year, assets increase $80,000 and liabilities increase $50,000. What is the equity at the end of the year? 2.
Answers (1)
A 3-year interest rate swap has a level notional amount of $300,000. Each settlement period is one year and the variable rate is the one-year spot interest rate at the beginning of the settlement period.
Answers (1)
New Questions in Business
During the 1800s, there was an increase in nationalism among European countries, and many people advocated for countries being set up along ethnic or linguistic lines.
Answers (1)
A company is planning to purchase a machine that will cost $45,000 with a six-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year.
Answers (1)
Non-federal or chartered banks who broker or lend for mortgages must be registered with
Answers (1)
Carr Company produces a single product. Last year, Carr manufactured 27,120 units and sold 21,800 units.
Answers (1)
Which of the following is true regarding the internal rate of return for a project? a. Managers may believe (in most cases, incorrectly) that the internal rate of return is the compounded rate of return earned by the initial investment. b.
Answers (1)