Required information $$

Problem $19-58($LO $19-4)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

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.

The mortgage is attached to the building and land.

Ernesto was asking for $$470,000$ for the company. His tax basis in the BLI stock was $$150,000.$ Included in the sales price

was an unrecognized customer list valued at $$150,000.$ The unallocated portion of the purchase price $($ $$120,000)$ will be

recorded as goodwill.

Assume Ernesto agrees to sell his stock in BLI to Amy and Brian for $$470,000.$

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?

Answer is complete but not entirely correct.