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:

Note: Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.

FMV Adjusted Tax Basis Appreciation

Cash $ $11,000$ $ $11,000$

Receivables $19,00019,000$

Building $92,00046,00046,000$

Land $195,00085,000110,000$

Total $ $317,000$ $ $161,000$ $ $156,000$

Payables $ $23,000$ $ $23,000$

Mortgage$*104,000104,000$

Total $ $127,000$ $ $127,000$

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

Ernesto was asking for $$424,000$ for the company. His tax basis in the BLI stock was $$130,000.$ Included in the sales price was an unrecognized customer list valued at $$130,000.$ The unallocated portion of the purchase price $($$$104,000)$ will be recorded as goodwill.

Assume Ernesto agrees to sell his stock in BLI to Amy and Brian for $$424,000.$

Problem $19-58$ Part a $($Algo$)$

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 because of the transaction?