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: (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.) Appreciation Cash Receivables Building Land FMV $ 14,000 21,000 94,000 204,000 $ 333,000 Adjusted Tax Basis $ 14,000 21,000 47,000 74,000 $ 156,000 47,000 130,000 $ 177,000 Total Payables Mortgage* $ 25,000 108,000 $ 133,000 $ 25,000 108,000 $ 133,000 Total * The mortgage is attached to the building and land. Ernesto was asking for $470,000 for the company. His tax basis in the BLI stock was $150,000. Included in the sales price was an unrecognized customer list valued at $150,000. The unallocated portion of the purchase price ($120,000) will be recorded as goodwill. Assume Ernesto agrees to sell his stock in BLI to Amy and Brian for $470,000. a. What amount of gain or loss does BLI recognize if the transaction is structured as a stock sale to Amy and Brian? What amount of corporate-level tax does BLI pay as a result of the transaction. $ Gain or loss recognized Corporate-level tax 447,000 93,870 $ b. What amount of gain or loss does Ernesto recognize if the transaction is structured as a stock sale to Amy and Brian