Please Explain

Please explain

a) What amount of gain or loss BLI recognize if transaction is structured as a stock sale to Amy and Brian? What amount of corporate-level tax does BLI pay as a result of the transaction?

b) What amount of gain or loss does Ernesto recognize if the transaction is structured as a stock sale to Amy and Brian?

Please ignore the first picture. Use the second one as reference.

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: - The mortgage is attached to the buliding and land. Emesto 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 ($97,800) will be recorded as goodwil. Note: Negative amounts should be indicated by a minus sign. Problem 19.57 Part b (Algo) 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? Note: Pound intermediate calculations and final answer to the nearest whole doller amount. 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, Emesto Young, they examined the company's tax accounting balance sheot. The relevant information is summarized as follows: Note: Leave no answer blank. Enter zero If applicable. Negative amounts should be indicated by a minus sign. * The mortgage is attached to the buliding and land. Ernesto was asking for $549,000 for the company. His tax basis in the BLI stock was $180,000. Included in the sales price was an unrecognized customer list valued at $180,000. The unallocated portion of the purchase price ($144,000) will be recorded as goodwill. Assume Ernesto agrees to seil his stock in BL.I to Amy and Brian for $549,000. Problem 19-58 Part a (Algo) a. What amount of gain or loss does BLI recognize if the transaction is structured as a stock sale to Amy and Brian? What amount of corporate-evel tax does BLi pay as a result of the transaction