3. Randall owns all the stock of SilverLane, Inc., a C corporation for which his adjusted basis is $225,000. Randall founded SilverLane 12 years ago. The assets and liabilities of SilverLane are recorded as follows.

Assets	Basis	FMV
Cash	$ 15,000	$ 15,000
Accounts receivable	0	25,000
Inventory	30,000	35,000
Machinery and equipment*	70,000	90,000
Land	60,000	150,000
	$175,000	$315,000
Liabilities	Basis	FMV
Accounts payable	$ 5,000	$ 5,000
Notes payable	10,000	10,000
	$15,000	$15,000

?

*Accumulated depreciation of $55,000 has been deducted. Randall has agreed to sell the business to Mable and they have agreed on a purchase price of $350,000 less any outstanding liabilities. They are both in the 35% tax bracket, and SilverLane is in the 34% tax bracket.

a. ?	Advise Randall on whether the form of the sales transaction should be a stock sale or an asset sale. Explain your reasoning and any computations.
b. ?	Advise Mable on whether the form of the purchase transaction should be a stock purchases or an asset purchase.