The Tax Status of the Transaction May Influence the Purchase

The tax status of the transaction may influence the purchase price by

A) Raising the price demanded by the seller to offset potential tax liabilities
B) Reducing the price demanded by the seller to offset potential tax liabilities
C) Causing the buyer to lower the purchase price if the transaction is taxable to the target firm's shareholders
D) Forcing the seller to agree to defer a portion of the purchase price
E) Forcing the buyer to agree to defer a portion of the purchase price