Using the same facts in problem 47, assume Ernesto agrees to sell his stock in BLI to

Question:

Using the same facts in problem 47, assume Ernesto agrees to sell his stock in BLI to Amy and Brian for $400,000.

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 as a result of the transaction, assuming a tax rate of 21 percent?

b. What amount of gain or loss does Ernesto recognize if the transaction is structured as a stock sale to Amy and Brian?

c. What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a stock sale?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 73% (15 reviews)

a 0 BLI does not recognize any gain or loss because it does not sell its assets ...View the full answer

Answered By

Ali Khawaja

my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce

4.00+ 1+ Reviews 10+ Question Solved

Related Book For book-img-for-question

Taxation Of Individuals And Business Entities 2019 Edition

ISBN: 9781259918391

10th Edition

Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver

See More Books

Question Posted: Apr 05, 2019 02:11 PM

See More Questions

Using the same facts in problem 47, assume Ernesto agrees to sell his stock in BLI to

Question:

Step by Step Answer:

a 0 BLI does not recognize any gain or loss because it does not sell its assets ...View the full answer

Taxation Of Individuals And Business Entities 2019 Edition

Students also viewed these Business questions