One of your clients, Janice Tolk, has entered into an agreement with Dustin Crosby to sell her sole proprietorship for $850,000 on January, 17,2023. Dustin has been impressed with your explanations throughout the negotiations and has also decided to retain you as his CPA. (There is no conflict of interest because the deal has already closed).

The assets of the business are:

Asset	janice's Adjusted Basis	FMV
Accounts Receivable	50,000	50,000
Inventory	85,000	95,000
Equipment	125,000	150,000
Furniture and Fixtures	60,000	90,000
Buildings	155,000	230,000
Land	35,000	75,000
Total	510,000	690,000

Calculate Janice's Realized and recognized gain.

Determine Dustin's Basis for each of the assets to include in the letter below.

Write a Letter to Dustin Informing him of the tax consequences of his purchase. His address is 2902 Hartman Road, Amarillo, TX 79124

In your letter include the basis of each asset (don't forget goodwill)

Include the amortization period for the goodwill, and the depreciable life of the equipment, furniture and fixtures, commercial building, and land. (how many years are the assets depreciated/amortized over?)

Chapter 2-3F has an example of client letter.