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 34 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?