Twelve years ago, Mr. and Mrs. Bathgate purchased a business. This year, they sold the business for $750,000 lump-sum payment. The business had the following balance sheet assets.
TAX BASIS FMV
AR $63,500 $63,500
INV $249,000 $300,000
FURNITURE/FIXTURES:
COST $468,000
ACC DEPR. (421,800)
$46,200 $100,000
PURCH. GW COST $300,000
ACC AMOR. (233,600)
66,400 286,500
425,100 750,000
As a result of the sale, the Bathgates should recognize: