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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 the sole shareholder

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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 the sole shareholder of the corporation. Emesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: * The mortgage is attached to the builing and land. Emesto was asking for $568,950 for the company. His tax basis in the BLI stock was $148,000. Included in the sales price was an unrecognized customer ist valued at $196,000. The unallocated portion of the purchase price ($92,000) will be recorded as goodwill. Note: Negative amounts should be Indicated by o minus sign. Required: a. What amount of gain or loss does BLl recognize if the transaction is structured as a direct asset sale to Amy and Brian? What amount of corporate-level tax does 8 Li pay as a result of the transaction? b. What amount of gain or loss does Ernesto recognize if the tansaction is structured as a direct asset sale to Amy and Brian, and BLI distributes the aftertax proceeds icomputed in part (o)) to Emesto in liquidation of his stock? Note: Round intermedlote calculations and final answer to the nearest whole dollor amount. c1. What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisiton as a direct asset purchase? c2. What is the tox basis in the assets received by Amy and Brian? Complete this question by entering your answers in the tabs below. 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? Complete this question by entering your answers in the tabs below. What amount of gain or loss does Ernesto recognize if the transaction is structured as a direct asset sale to Amy and Brian, and BL distributes the after-tax proceeds [computed in part (a)] to Ernesto in liquidation of his stock? Note: Round Intermediate calculationsand final answer to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase? Complete this question by entering your answers in the tabs below. What is the tax basis in the assets recelved by Amy and Brian

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