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?

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.)

1. c1. What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase?
2. c2. What is the tax basis in the assets received by Amy and Brian?
3. 

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: Appreciation Cash Receivables Building Land Total FMV $ 31,500 17,000 113,500 273,000 $ 435,000 Adjusted Tax Basis $ 31,500 17,000 56,750 91,000 $ 196,250 56,750 182,000 $ 238,750 Payables Mortgage* Total $ 22,300 182,250 $ 204,550 $ 22,300 182,250 $ 204,550 * The mortgage is attached to the building and land. Ernesto was asking for $450,200 for the company. His tax basis in the BLI stock was $120,000. Included in the sales price was an unrecognized customer list valued at $138,000. The unallocated portion of the purchase price ($81,750) will be recorded as aoodwill. (Neaative amounts should be indicated by a minus sian.) $ $ 0 Cash paid Liabilities assumed Amount realized Adjusted Basis Gain or Loss Recognized Tax Rate Tax $ 0 % $ 0 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: Appreciation Cash Receivables Building Land Total FMV $ 31,500 17,000 113,500 273,000 $ 435,000 Adjusted Tax Basis $ 31,500 17,000 56,750 91,000 $ 196,250 56,750 182,000 $ 238,750 Payables Mortgage* Total $ 22,300 182,250 $ 204,550 $ 22,300 182,250 $ 204,550 * The mortgage is attached to the building and land. Ernesto was asking for $450,200 for the company. His tax basis in the BLI stock was $120,000. Included in the sales price was an unrecognized customer list valued at $138,000. The unallocated portion of the purchase price ($81,750) will be recorded as aoodwill. (Neaative amounts should be indicated by a minus sian.) $ $ 0 Cash paid Liabilities assumed Amount realized Adjusted Basis Gain or Loss Recognized Tax Rate Tax $ 0 % $ 0