Myrna operates a plumbing business as a sole proprietorship. During the year, she sells the business to Tonya for $175,000. The assets sold and the allocation of the purchase price are as follows

Myrna acquired the building 10 years ago for $70,000. She acquired the equipment on various dates, paying a total of $30,000 for it. What are the tax consequences of the sale for Myrna?

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Adjusted Basis S 6,000 42,500 10,000 6,500 0- $65,000 Purchase Price Plumbing parts Building Land Equipment Goodwill Total assets S 8,000 93,900 15,100 30,600 27,400 $175,000