There are a number of key tax effects that must be considered during a business divestiture and acquisition,from the perspectives of both the vendor and the purchaser.Match the following tax considerations with the most appropriate answer from the list below.Use each answer only once.
Tax consideration:
1.A change in control will restrict the use of losses._____
2.Capital gains and business income may occur in the business,reducing the after-tax proceeds._____
3.The capital gain deduction may apply._____
4.The cost base for assets is based on their market value._____
Answers:
a.A key tax consideration for the sale of shares from the vendor's perspective.
b.A key tax consideration for the sale of assets from the vendor's perspective.
c.A key tax consideration for the purchase of assets from the purchaser's perspective.
d.A key tax consideration for the purchase of shares from the purchaser's perspective.
Correct Answer:
Verified
1.A change in control...
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