Required information

Problem $8-57($LO $8-4)($Algo$)$

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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:

$$FMVAdjusted Tax BasisAppreciationCash$ $32,250$$ $32,250$Receivables$18,60018,600$Building$136,00068,00068,000$Land$269,25089,750179,500$Total$ $456,100$$ $208,600$$ $247,500$Payables$ $27,200$$ $27,200$Mortgage$*$Footnote asterisk$135,750135,750$Total$ $162,950$$ $162,950$

$*$Footnote asterisk The mortgage is attached to the building and land.

Ernesto was asking for $$544,150$ for the company. His tax basis in the BLI stock was $$151,000.$ Included in the sales price was an unrecognized customer list valued at $$172,000.$ The unallocated portion of the purchase price $($$$79,000)$ will be recorded as goodwill.

Note: Negative amounts should be indicated by a minus sign.

Problem $8-57$ Part a $($Algo$)$

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 because of the transaction?