Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their s 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 Appreciation Cash $ 17,250 Receivables 21, 20 Building Land 55,800 248,250 82, 750 165,500 Total $396,700 $ 176, 200 $220,500 Payables 18,100 18, 100 Mortgage" 153,080 153, 000 Total $171,100 $ 171, 100 * The mortgage is attached to the building and land. Ernesto was asking for $425,600 for the company. His tax basis in the BLI stock was $170,000. Included in the sales price was an unrecognized customer list valued at $109,000. The unallocated portion of the purchase price ($91,000) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.) 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 corporate-level tax does BLI pay as a result of the transaction? Cash paid Liabilities assumed Amount realized Adjusted Basis Gain or Loss Recognized Tax Rate Tax 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 after-tax proceeds [computed in part (a)] to Ernesto in liquidation of his stock? (Round intermediate calculations and final answer to the nearest whole dollar amount.) Gain or loss recognized c1. What are the tox benefits, if any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase? c2. What is the tax basis in the assets received by Amy and Brian? Complete this question by entering your answers in the tabs below. Req ci Req c2 What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase? No tax benefits. Tax basis in the assets received equal to the assets' fair market value. Reg cf Req c2 > c1. What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a direct asset purchase? e2. What is the tax basis in the assets received by Amy and Brian? Complete this question by entering your answers in the tabs below. Req cl Req c2 What is the tax basis in the assets received by Amy and Brian? Cash Accounts receivable Building Required information The following information applies to the questions displayed below.] Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Inc. (WFI). After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet: Adjusted Basis Appreciation 23, 808 Land 46, 808 23, Bee Total 3 468, 898 92, 808 Under the terms of the agreement, Shauna will receive the $230,000 cash In exchange for her 50 percent Interest in WFI. Shauna's tax basis in her WFI stock is $57,500. Danielle will receive the buil Il receive the building and land in exchange for her 50 percent interest in WFI. Danielle's tax basis in her WFI stock is $115, . Assume for purposes of this problem tha available to distribute to the shareholders has been reduced by any tax paid any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) . What amount of gain or loss does WFI recognize in the complete liquidation? Gain or loss recognized