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10 and 11 are tied to number 9 pls answer all asap Amy and Brian were investigating the acquisition of a tax accounting business, Botiom
10 and 11 are tied to number 9 pls answer all asap
Amy and Brian were investigating the acquisition of a tax accounting business, Botiom Line, Inc. (BL). As part of their discussions with the sole shareholour of the corporation, Ennesio Young, they examined the company's tax accounting balance shoet. The rolovant information is summanzed as tollows: - The mortgage is attached to the buiding and land. Amy and Brian agreed to pay $415,000 for the company. Enesto has a tax basis in the BLL stock was $100,000. Included in the sales price was an unrecognizod customer list valued at $100,000. The unallocated portion of the purchase price ($95,000) will be recorded as goodwill The copporate-tevel tax of 21 percont applies to BLI as a result of the transaction. What amount of gain or loss does Emesto recognize if the transacton is structured as a drect asset sale by BLL to Any and Brian and BLl distributes the after-tax proceeds to Emesto in Squidation of his slock? QUESTION 10 Same tacts as the price quemon, except Amy and Brisn agee to pay $415,000 to purchinse at of the 861 stock trom Emesta. What amount of gain or loss does Emesto tecognce if tho transaction is structured as a stock sale to Amy and Enian? QUESTION 11 Same facts as the phor two questions except rather than puechase Bul diretty. Any and Brian will have their corponation, Spartan Tax Services (STS). could petan an equity intwest in ST5. As past of the agreement, Amy and Brian propose to pay Emosto 5205 .000 pls voting stock in sTs worth tremaction is sinutired as a Typo A mergen Step by Step Solution
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