#9
Several years ago B purchased a business. In 2018 B sold the business for a lump-sum payment of 1200000. The balance sheet reflecting the tax basis of the assets and allocation of the purchase price based on the fair market value of the assets as of the date of sale is as follows:
		Tax
		Basis	FMV
Accounts Receivable		63500	63500
Inventory		249000	300000
Equipment
Cost	468000
Accum Depreciation	-421800
Net		46200	100000
Purchased goodwill
Cost	300000
Accum Amortization	-233600
Net		66400	736500
Total		425100	1200000
What is the total amount and character of the gain that B must recognize?