Which one of the following statements is true?
A) Target firm shareholders may accept cash or acquirer stock in exchange for their shares for the transaction to be considered tax free
B) To be tax free, the target firm shareholders must receive acquirer firm shares for all of the target firm's shares outstanding
C) At least one-half of the assets of the target firm are recorded on the balance sheet of the acquirer at their book rather than market value in a tax free transaction
D) If the assets of a firm are written up to fair market value as part of the transaction, the increase in value is considered a taxable gain
E) Target firm shareholders are required by law to pay taxes on any writeup of the firm's assets to fair market value

Question

Quizplus · Accepted Answer

The Answer of Which one of the following statements is true?
A) Target firm shareholders may accept cash or acquirer stock in exchange for their shares for the transaction to be considered tax free
B) To be tax free, the target firm shareholders must receive acquirer firm shares for all of the target firm's shares outstanding
C) At least one-half of the assets of the target firm are recorded on the balance sheet of the acquirer at their book rather than market value in a tax free transaction
D) If the assets of a firm are written up to fair market value as part of the transaction, the increase in value is considered a taxable gain
E) Target firm shareholders are required by law to pay taxes on any writeup of the firm's assets to fair market value

Which One of the Following Statements Is True