A. * What is the adjusted basis??? It's not 190,150 and I don't know what else it could be?

B.

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 Basis FMV Appreciation Cash Receivables Building Land Total $28,500 28,500 20,400 63,500 20,400 127,000 63,500 233,250 77750155,500 $219,000 $409,150 $190,150 Payables Mortgage* Total 24,200 24,200 174,750 174,750 $198,950 $198,950 * The mortgage is attached to the building and land Ernesto was asking for $496,950 for the company. His tax basis in the BLI stock was $146,000. Included in the sales price was an unrecognized customer list valued at $189,000. The unallocated portion of the purchase price ($97,750) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.)