Please help me Adjusted TaxBasisFHVAppreciationCashReceivablesBuildingLand$ 10,00015,000100,000225,000$ 10,00015,00050,00075,000$ 150,00050,000150,000$ 200,000$ 350,000TotalPayablesMortgage$ 18,000112,000$ 130,000$ 18,000112,000$ 130,000Total* The mortgage is attached to the building and land.Ernesto was asking for $400,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales pricewas an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price ($80,000) will berecorded as goodwill.Assume Ernesto agrees to sell his stock in BLI to Amy and Brian for $400,000.a. What amount of gain or loss does BLI recognize if the transaction is structured as a stock sale to Amy and Brian? What amount ofcorporate-level tax does BLI pay as a result of the transaction.Gain or loss recognizedCorporate-level tax L TOIUWy HHOauU appes IU Une yuesuus ursprayeu veuw.Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part oftheir discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's taxaccounting balance sheet. The relevant information is summarized as follows: (Leave no answer blank. Enter zero ifapplicable. Negative amounts should be indicated by a minus sign.)THV$ 10,00015,000100,000225,000$350,000Adjusted TaxBasin$ 10,00015,00050,00075,000ApprecjationCashReceivablesBuildingLand50,000150,000$150,000$ 200,000TotalPayablesMortgage$ 18,000112,000$ 130,000$ 10,000112,000$ 130,000Total* The mortgage is attached to the building and land.Ernesto was asking for $400,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales pricewas an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price ($80,000) will berecorded as goodwill.Assume Ernesto agrees to sell his stock in BLI to Amy and Brian for $400,000.b. What amount of gain or loss does Ernesto recognize if the transaction is structured as a stock sale to Amy and Brian?Gain or loss recognized

Recognized gain It is important for recognize the required gain or loss which are involved in the…

Assume Ernesto agrees to sell his stock in BI to Amy and Brian for $400,000. 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-level tax does BU pay as a result of the transaction. Gain or loss recognized Corporate-level tax