Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (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 $ 8,000 16,080 100,00 215,88 $339,000 Adjusted Basis $ 8,000 16,000 50,000 115,000 $189,000 - 50,000 199,000 $150,000 Payables Mortgage Total $ 20,000 111,08 $131,000 $20,000 111,000 $131,000 * The mortgage is attached to the building and land. Ernesto was asking for $414,000 for the company. His tax basis in the BLI stock was $130,000. Included in the sale price was an unrecognized customer list valued at $130,000. The unallocated portion of the purchase price ($76,000) will be recorded as goodwill. Rather than purchase BLI directly, Amy and Brian will have their corporation, Spartan Tax Services (STS), acquire the business from Ernesto in a tax-deferred Type A merger. Amy and Brian would like Ernesto to continue to run BLI, which he agreed to do if he could obtain an equity interest in STS. As part of the agreement, Amy and Brian propose to pay Emesto $207,000 plus voting stock in STS worth $207.000. Emesto will become a 10 percent shareholder in STS after the c. What amount of gain or loss does Ernesto recognize if the transaction is structured as a Type A merger? (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.) Gain or loss recognized