Mindy and Peter wish to acquire Willow Co., a C corporation. As part of their discussions with Sam, the sole shareholder of Willow, they examined the business' tax accounting balance sheet. The relevant information is summarized as follows: FMV Adjusted Basis Appreciation Cash 20,000 20,000 Equipment 80,000 30,000 50,000 Building 150,000 50.000 100.000 Land 300,000 100,000 200,000 Total 550,000 200,000 350,000 Payables 40,000 40,000 Mortgage 110,000 110,000 Total 150,000 150,000 Mortgage is attached to the building and the land. Sam's basis in the Willow stock is $250.000. Mindy and Peter offer to pay Sam $700,000 for his company. Included in the proposed sale price is a previously unrecognized intangible valued at $140,000. The unallocated portion of the purchase price will be recorded as goodwill. Iquestion 3 of 4] What amount of gain or loss does Willow recognize if the transaction is structured as a direct asset sale to Mindy and Peter (and the sale price remains $700,000)? O $650.000 O $700.000 OSO O $500.000 Mindy and Peter wish to acquire Willow Co., a C corporation. As part of their discussions with Sam, the sole shareholder of Willow, they examined the business' tax accounting balance sheet. The relevant information is summarized as follows: FMV Adjusted Basis Appreciation Cash 20,000 20,000 Equipment 80,000 30,000 50,000 Building 150,000 50.000 100.000 Land 300,000 100,000 200,000 Total 550,000 200,000 350,000 Payables 40,000 40,000 Mortgage 110,000 110,000 Total 150,000 150,000 Mortgage is attached to the building and the land. Sam's basis in the Willow stock is $250.000. Mindy and Peter offer to pay Sam $700,000 for his company. Included in the proposed sale price is a previously unrecognized intangible valued at $140,000. The unallocated portion of the purchase price will be recorded as goodwill. Iquestion 3 of 4] What amount of gain or loss does Willow recognize if the transaction is structured as a direct asset sale to Mindy and Peter (and the sale price remains $700,000)? O $650.000 O $700.000 OSO O $500.000