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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

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:
\table[[,Adjusted Tax,,],[,FMV,Basis,Appreciation],[Cash,$24,000,$24,000,],[Receivables,24,200,24,200,],[Building,112,000,56,000,56,000],[Land,238,500,79,500,159,000],[Total,$398,700,$183,700,$215,000
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