2 part question, thanks!

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Appreciation Cash Receivables Building Land FMV $ 14,500 18,800 102,500 260, 250 $396,050 Adjusted Basis $ 14,500 18,800 51,250 86,750 $171,300 51,250 173,500 $224,750 Total Payables Mortgage* Total $ 19, 100 159,000 $178, 100 $ 19, 100 159,000 $178, 100 The mortgage is attached to the building and land. Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was $142.000. Included in the sales price was an unrecognized customer list valued at $147,000. The unallocated portion of the purchase price ($80,750) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.) Required information a. What amount of gain or loss does BLI recognize if the transaction is structured as a direct asset sale to Amy and Brian? What amount of corporate-level tax does BLI pay as a result of the transaction? Cash paid Liabilities assumed Amount realized $ 0 Adjusted Basis Gain or Loss Recognized Tax Rate $ 10 Tax $ 0 Appreciation 3 Cash Receivables Building Land FMV $ 14,500 18,800 102,500 260,250 $396,050 Basis $ 14,500 18,800 51,250 86,750 $171,300 51,250 173,500 $224,750 Total Payables Mortgage Total $ 19,100 159,000 $178, 100 $ 19,100 159,000 $178,100 * The mortgage is attached to the building and land. + nces Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was $142,000. Included in the sales price was an unrecognized customer list valued at $147,000. The unallocated portion of the purchase price ($80.750) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.) b. What amount of gain or loss does Ernesto recognize if the transaction is structured as a direct asset sale to Amy and Brian, and BLI distributes the after-tax proceeds (computed in part (a)] to Ernesto in liquidation of his stock? (Round intermediate calculations and final answer to the nearest whole dollar amount.) Gain or loss recognized Prey 14. 15 of 18 Next >