Sam Sherwood Wishes to Purchase Kitchen Cabinets, Inc

Sam Sherwood wishes to purchase Kitchen Cabinets, Inc. (KCI) , from its sole shareholder, Steve Oaks. Which of the following is TRUE if Sam purchases the assets rather than the shares of the corporation?

A) Sam will have no choice but to assume the liabilities of KCI.
B) Sam will have to acquire all of the assets of KCI.
C) Kitchen Cabinets Inc. may be subject to business income and capital gains.
D) Payment of the purchase price will flow directly to Steve Oaks.