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:

FMV Adjusted Tax Basis Appreciation

Cash $ $29,000$ $ $29,000$

Receivables $17,30017,300$

Building $124,50062,25062,250$

Land $295,50098,500197,000$

Total $ $466,300$ $ $207,050$ $ $259,250$

Payables $ $21,400$ $ $21,400$

Mortgage$*161,000161,000$

Total $ $182,400$ $ $182,400$

$*$ The mortgage is attached to the building and land.

Ernesto was asking for $$500,650$ for the company. His tax basis in the BLI stock was $$114,000.$ Included in the sales price was an unrecognized customer list valued at $$117,000.$ The unallocated portion of the purchase price $($$$99,750)$ will be recorded as goodwill.

Note: Negative amounts should be indicated by a minus sign.

Required:

a$.$ 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?

b$.$ 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.

c$1.$ What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase?

c$2.$ What is the tax basis in the assets received by Amy and Brian?