[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: Cash Receivables Building Land Total Payables FMV $ 10,000 15,000 100,000 225,000 $ 350,000 Adjusted Tax Basis $ 10,000 15,000 Appreciation 50,000 150,000 50,000 75,000 $ 150,000 $ 200,000 Mortgage* Total $ 18,000 112,000 $ 130,000 $ 18,000 112,000 $ 130,000 * The mortgage is attached to the building and land. Ernesto was asking for $400,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales price was an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price ($80,000) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.) Problem 19-57 Part a (Static) 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 BLI pay as a result of the transaction? Cash paid Liabilities assumed Amount realized Adjusted Basis Gain or Loss Recognized Tax Rate % Tax