If the transaction is tax-free, the acquiring company is able to transfer or carry over the target's tax basis to its own financial statements.

Name: If the transaction is tax-free, the acquiring company is able to transfer or carry over the target's tax basis to its own financial statements.
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In a tax-free transaction, the acquiring company is able to transfer or carry over the target's tax basis to its own financial statements, which can result in tax savings for the acquiring company.

If the Transaction Is Tax-Free, the Acquiring Company Is Able