Which of the following is NOT a tax consideration motive for a merger?
A) Tax gains from net operating losses
B) Tax gains from unused debt capacity
C) Tax gains from unused equity capacity
D) Tax gains from surplus funds

Question

Quizplus · Accepted Answer

Tax gains from unused equity capacity are not a recognized tax consideration motive for a merger. Tax considerations typically involve the utilization of net operating losses, the strategic use of debt, or the deployment of surplus funds to optimize tax outcomes. Unused equity capacity does not directly result in tax benefits.

Which of the Following Is NOT a Tax Consideration Motive