9.1. In a stock purchase the proceeds to the seller would be $63. In an asset purchase the proceeds to the seller would be $47 and the buyer would be able to step up the basis of Appendix C Answers to Selected End-of-Chapter Problems 367 the assets by $50 to $70. Goodwill amortization would be $3.333 per year over 15 years.

The tax shield would be $1.333 and have a present value of $10.74.