In a Taxable Transaction

In a taxable transaction:

A) the acquiring firm has no immediate tax effects but gains valuable future depreciation tax benefits on the marked up assets.
B) the shareholders of both firms realize immediate capital gains.
C) acquiring firms generally do not write up the assets of the acquired firm.
D) the assets of both the acquiring and acquired firms are written up to their current market values.
E) shares of the acquiring firm are exchanged for the target firm's shares.