Background Your Client, Tom M and his wife, Donna M, are the owners of a heating oil delivery business which they operated for more than 20 years. They sold the business to a competitor on April 30, 2021, after the end of the 2020-2021 heating season. The business was operated as Tom M Oil Inc., an $ corporation, which was owned 50% by Tom and 50% by Donna. They realized net profits from the operation of Tom M Oil Inc. from Jan - Apr 2021 of $45,000. The shareholder account balances for Tom and Donna as of Jan 1, 2021 were $0. The corporation's assets consisted solely of a customer list, service parts, oil inventory and three delivery trucks: . Truck #1, purchased on June 15, 2020 for $80,000, cumulative depreciation $35,000, FMV of $70,000 . Truck #2, purchased on March 20, 2018 for $45,000, cumulative depreciation $40,000, FMV of $60,000 . Truck #3, purchased on October 15, 2018 for $40,000, cumulative depreciation $35,000, FMV of $50,000 The corporation owned no real property. The competitor, Energy Star Corp. (Buyer), paid the purchase price of $495,700 plus the value of the oil inventory at cost on the day of the closing, allocated as follows: . Truck 1 70,000 . Truck 2 60,000 . Truck 3 50,000 . Supplies Parts (cost - $4,300) 8,200