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: Cash Receivables Building Land FMV $ 25,000 22,000 131,000 264,000 Adjusted Tax Basis $ 25,000 22,000 65,500 88,000 Appreciation Total $ 442,000 $ 200,500 65,500 176,000 $ 241,500 Payables Mortgage* $ 20,500 137,250 $ 20,500 137,250 $ 157,750 $ 157,750 * Total The mortgage is attached to the building and land. Ernesto was asking for $552,750 for the company. His tax basis in the BLI stock was $181,000. Included in the sales price was an unrecognized customer list valued at $186,000. The unallocated portion of the purchase price ($82,500) will be recorded as goodwill. Note: Negative amounts should be indicated by a minus sign. Required: Required A Required B Required C1 Required C2 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? Cash paid Liabilities assumed Amount realized Adjusted Basis Gain or Loss Recognized Tax Rate Tax % Required A Required B Required C1 Required C2 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? Note: Round intermediate calculations and final answer to the nearest whole dollar amount. Gain or loss recognized Required A Required B Required C1 Required C2 What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase? Required A Required B Required C1 Required C2 What is the tax basis in the assets received by Amy and Brian? Cash Accounts receivable Building Land Customer list Goodwill Total