Please answer the above question. The below is an incorrect answer given.

Required information Problem 19-58 (LO 19-4) (Algo) [The following information applies to the questions displayed below.] Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (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: (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.) * The mortgage is attached to the building and land. Ernesto was asking for $344,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales price was an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price ($80,000) will be recorded as goodwill. Assume Ernesto agrees to sell his stock in BLI to Amy and Brian for $344,000. Problem 19-58 Part b (Algo) b. What amount of gain or loss does Ernesto recognize if the transaction is structured as a stock sale to Amy and Brian? Answer: \begin{tabular}{|l|c|cr|r|} \hline & \multicolumn{1}{|c|}{ FMV } & \multicolumn{2}{c|}{ Adjusted Tax Basis } & Appreciation \\ \hline Cash & $12,000.00 & $ & 12,000.00 & \\ \hline Receivables & $19,000.00 & $ & 19,000.00 & \\ \hline Building & $77,000.00 & $ & 38,500.00 & $38,500.00 \\ \hline Land & $1,65,000.00 & $ & 1,05,000.00 & $60,000.00 \\ \hline Total & $2,73,000.00 & $ & 1,74,500.00 & $98,500.00 \\ \hline Payable & $22,000.00 & $ & 22,000.00 & \\ \hline Mortgage & $87,000.00 & $ & 87,000.00 & \\ \hline Total & $1,09,000.00 & $ & 1,09,000.00 & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Cash Paid (A) & $3,44,000.00 \\ \hline Liabilities Assumed (B) & $1,09,000.00 \\ \hline Amount Realised(C = A+B) & $4,53,000.00 \\ \hline Adjusted Basis (D) & $1,74,500.00 \\ \hline Gain Recognized (C-D) & $2,78,500.00 \\ \hline \end{tabular}