A business for sale is being listed for $500,000.

Please for each the buyer and seller, list the most preferable and realistic ways this value would be split upon the various asset classifications listed by the IRS for a total value of $500k from both the perspective of each the buyer and seller.

Please explain why each the buyer and seller would prefer to have the values classified as such.

EXHIBIT 1 Classification of Certain Assets Under IRC Section 1060 (Form 8594) Class I: Cash (checking and savings accounts) Class II: Certificate of deposit and marketable securities Class III: Accounts receivable Class IV: Inventory (valued pursuant to Revenue Procedure 2003-51) Class V: Tangible realty and personalty Class VI: Certain IRC section 197 intangibles, such as customer lists, trademarks, franchises, and any portion of the price allocated to a covenant not to compete Class VII: Goodwill, along with any asset not categorized within one of the other six classes