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2every box outlined in blue needs answered. please don't attempt unless you are confident you will get it correct. my hw allows me to check
2every box outlined in blue needs answered. please don't attempt unless you are confident you will get it correct. my hw allows me to check my work, I will thumbs down every wrong answer.
Amy and Brian were Investigating the acquisition of a tax accounting business, Bottom Line Incorporated (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: * The mortgage is attached to the bullding and land. Ernesto was asking for $552,750 for the company. HIs tax basls in the BLI stock was $181,000. Included In the sales price was an unrecognized customer list valued at $186,000. The unallocated portion of the purchase price ($82,500) will be recorded as goodwill. Note: Negatlve amounts should be Indlcated by a minus sign. Complete this question by entering your answers in the tabs below. What amount of gain or loss does BLI recognize if the Lansaction 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? Complete this question by entering your answers in the tabs below. 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 Emesto in liquidation of his stock? Note: Round intermediate calculations and final answer to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. What is the tax basis in the assets received by Amy and BrianStep by Step Solution
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