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?

$91,000

Explanation:

Purple has a gain of $91,000

= $245,000 - $154,000 = $91,000

($245,000 liability treated as fair market value –$154,000 basis)

NB: If property is subject to a liability(mortgage) over its basis, for purposes of determining gain on the property,  the fair market value of the property is treated as being not less than the amount of the liability(mortgage).

start by isolating the variable on one side by adding 43w^2 to both sides.   the equation will read:

25w^2+5=0

*subtract 5 from both sides*

25w^2=-5

*divide both sides by 25*

w^2=-1/5

*take the square root of both sides*

w=√(-1/5)

the square root of -1 is i.   the square root of 5 remains √5

the answer is i/√5.

hope this

answer; i believe the correct answer is energy star;