Using the same facts in problem 47, 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 of corporatelevel tax does BLI pay as a result of the transaction, assuming a tax rate of 21 percent? b) What amount of gain or loss does Ernesto recognize if the transaction is structured as a stock sale to Amy and Brian? c) What are the tax benefits, if any, to Amy and Brian as a result of structuring the acquisition as a stock sale?
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