If an acquisition is completed using a cash payment,then the acquisition is:
A)taxable.
B)viewed as exchanging of shares and is not taxed.
C)a tax-free transaction as no capital gains or losses are recognized.
D)none of these options.

Question

Quizplus · Accepted Answer

If an acquisition is completed using a cash payment, it is a taxable transaction. The seller will recognize a capital gain or loss on the sale of their shares, and the buyer will acquire a basis in the acquired assets equal to the purchase price paid.

If an Acquisition Is Completed Using a Cash Payment,then the Acquisition