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Required information [The following information applies to the questions displayed below.) Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line

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Required information [The following information applies to the questions displayed below.) Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (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: Appreciation Cash Receivables Building Land Total FMV $ 24,000 24,200 112,000 238,500 $398,700 Adjusted Basis $ 24,000 24,200 56,000 79,500 $183,700 56,000 159,000 $215,000 Payables Mortgage Total $ 25,600 128, 250 $153,850 $ 25,600 128, 250 $153,850 The mortgage is attached to the building and land. Ernesto was asking for $504,100 for the company. His tax basis in the BLI stock was $144,000. Included in the sale price was an unrecognized customer list valued at $183,000. The unallocated portion of the purchase price ($76,250) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.) a. 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 Bul pay as a result of the transaction? Cash paid 0 Liabilities assumed Amount realized Adjusted Basis Gain or Loss Recognized Tax Rate 0 * The mortgage is attached to the building and land. Ernesto was asking for $504,100 for the company. His tax basis in the BLI stock was $144,000. Included in the sale price was an unrecognized customer list valued at $183,000. The unallocated portion of the purchase price ($76,250) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.) b. What amount of gain or loss does Ernesto recognize if the transaction is structured as a direct asset sale to Amy and Brian, and BLI distributes the after-tax proceeds computed in part (aj to Emesto in liquidation of his stock? (Round Intermediate calculations and final answer to the nearest whole dollar amount.) Gain or loss recognized

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