Which one of the following does not represent a potential tax gain from an acquisition?
A) The use of surplus funds
B) The use of tax loss carryforwards
C) The write-up of depreciable assets
D) The use of unused debt capacity
E) The increase in taxable income

Question

Quizplus · Accepted Answer

An increase in taxable income would not result in a tax gain from an acquisition as it would lead to higher taxes and not reduce tax liability. A potential tax gain from an acquisition can come from the use of surplus funds, tax loss carryforwards, the write-up of depreciable assets, and the use of unused debt capacity.

Which One of the Following Does Not Represent a Potential