Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated BLI As part of 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 corporatelevel tax does BLI pay because of the transaction?
Answer is complete but not entirely correct. 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 aftertax proceeds computed in part a to Ernesto in liquidation of his stock?
Gain or loss recognized
their discussions with the sole shareholder of the corporation, Emesto Young, they examined the company's tax
accounting balance sheet. The relevant information is summarized as follows:
The mortgage is attached to the building and land.
Ernesto was asking for $ for the company. His tax basis in the BLI stock was $ Included in the sales price
was an unrecognized customer list valued at $ The unallocated portion of the purchase price $ will be
recorded as goodwill.
Note: Negative amounts should be Indlcated by a minus sign.
