Which of the following are required for an acquisition to be considered tax-free?
I.continuity of equity interest
II.a business purpose,other than avoiding taxes,for the acquisition
III.payment in the form of equity shares for the acquired firm
IV.cash payment for the equity of the acquired firm
A) I and II only
B) II and III only
C) II and IV only
D) I, II, and III only
E) I, II, and IV only
Correct Answer:
Verified
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