a. What is the adjusted basis?

b. What is the amount of gain or loss recognized?

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows Adjusted FMV Basis Appreciation Cash Receivables Building Land Total $ 28,750 28,750 17,68e 72,750 84,000 $443,850 $203,100 17,68e 145, 500 252,000 72,750 168,906e $240,75e Payables Mortgage* Total $ 21,600 21,600 126,756 $148, 350 $148,350 126,756 * The mortgage is attached to the building and land Ernesto was asking for $546,000 for the company. His tax basis in the BLI stock was $163,000. Included in the sales price was an unrecognized customer list valued at $148,000. The unallocated portion of the purchase price ($102,500) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.)