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: PMV Adjusted Bais Appreciation Cash $14,000 $14,000 Receivables $19,100 $19,100 Building $130,000 $65,000 $65,000 Land $247,500 $82,500 $165,000 Total $410,600 $180,600 $230,000 Payables $23,900 $23,900 Mortage* 138,000 $138,000 Total $161,900 $161,900 *The mortage is attached to the building and land Ernesto was asking for $535,450 for the company. His tax basis is in the BLI stock was $104,000. Included in the sales price was an unrecognized customer list valued at $192,000. THe unallocated portion of the purchase price (94,750) will be recorded as goodwill. What amount of gain or loss does BLI recognize of the transaction is structured as a direct asset to Amy and Brian? What amount of corporate-level tax does BLI pay as a result of the transaction?.
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
PMV Adjusted Bais Appreciation
Cash $14,000 $14,000
Receivables $19,100 $19,100
Building $130,000 $65,000 $65,000
Land $247,500 $82,500 $165,000
Total $410,600 $180,600 $230,000
Payables $23,900 $23,900
Mortage* 138,000 $138,000
Total $161,900 $161,900
*The mortage is attached to the building and land
Ernesto was asking for $535,450 for the company. His tax basis is in the BLI stock was $104,000. Included in the sales price was an unrecognized customer list valued at $192,000. THe unallocated portion of the purchase price (94,750) will be recorded as
What amount of gain or loss does BLI recognize of the transaction is structured as a direct asset to Amy and Brian? What amount of corporate-level tax does BLI pay as a result of the transaction?.
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