All of the following represent potential tax benefits that can directly result from an acquisition except:
A) increasing the depreciation expense.
B) using tax losses.
C) increasing surplus funds.
D) increasing the use of leverage.
E) increasing interest expense.

Question

Quizplus · Accepted Answer

Increasing surplus funds does not directly result in a tax benefit. The other options (increasing depreciation expense, using tax losses, increasing the use of leverage, and increasing interest expense) can all result in tax benefits.

All of the Following Represent Potential Tax Benefits That Can