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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

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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 building and land. Ernesto was asking for $546,000 for the company. His tax basis in the BLI stock was $163,000. Included in the sales price was an unrecognized customer list valued at $148,000. The unallocated portion of the purchase price ($102,500) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.) Problem 19-57 Part a (Algo) a. What amount of gain or loss does BU recognize if the transection is structured as a direct asset sale to Amy and Brian? What amount of corporate-tevel tax does BU pay as a result of the transaction? 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 building and land. Ernesto was asking for $546,000 for the company. His tax basis in the BLI stock was $163,000. Included in the sales price was an unrecognized customer list valued at $148,000. The unallocated portion of the purchase price ($102,500) will be. recorded as goodwili. (Negative amounts should be indicated by a minus sign.) roblem 19-57 Part b (Algo) 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 listributes the after-tax proceeds (computed in part (a)) to Emesto in liquidation of his stock? (Round intermediate calculations and Inal answer to the nearest whole dollar amount.) 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. Emesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: - The mortgage is attached to the buliding and land. Emesto was asking for $546,000 for the company. His tax basis in the BLI stock was $163,000. Included in the sales price was an unrecognized customer list valued at $148,000. The unallocated portion of the purchase price ($102,500) will be recorded as goodwili. (Negative amounts should be Indicated by a minus sign.) Problem 19.57 Part c (Algo) c1. What are the tax benefits. If any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase? c2. What is the tax basis in the assets recelved by Amy and Brian? Complete this question by entering your answers in the tabs below. What is the tax basis in the assets received by Amy and Brian

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