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Accounting

#9
Several years ago B purchased a business. In 2018 B sold the business for a lump-sum payment of 1200000. The balance sheet reflecting the tax basis of the assets and allocation of the purchase price based on the fair market value of the assets as of the date of sale is as follows:
Tax
Basis FMV
Accounts Receivable 63500 63500
Inventory 249000 300000
Equipment
Cost 468000
Accum Depreciation -421800
Net 46200 100000
Purchased goodwill
Cost 300000
Accum Amortization -233600
Net 66400 736500
Total 425100 1200000
What is the total amount and character of the gain that B must recognize?

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