Which of the Following Statements Is FALSE

question 56

Multiple Choice

Which of the following statements is FALSE?

• A)The method of payment (cash or stock)affects how the value of the target's assets is recorded for tax purposes and it affects the combined firm's financial statements for financial reporting.
• B)The combined firm must mark up the value assigned to the target's assets on the financial statements by allocating the purchase price to target assets according to their fair market value.
• C)Any goodwill created in a merger deal can be amortized for tax purposes over 15 years.
• D)Many transactions are carried out as acquisitive reorganizations under the tax code.These structures allow the target shareholders to defer their tax liability on the part of the payment made in acquirer stock but they do not allow the acquirer to step up the book value of the target assets.

Explain the importance of creating shareholder wealth and how capital budgeting decisions can impact it.

Understand the impact of the change in required rate of return on project selection.

Critically assess projects with multiple internal rates of return and choose the most appropriate one for decision-making.

Understand the key scientific attitudes critical for psychological research.

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Definitions:

General Jurisdiction

The court's authority to hear a wide range of cases, not limited by subject matter or geographic location within its jurisdiction.

County

A territorial division within a state or country, functioning as an administrative or political unit.

District

An area or region defined for administrative, legal, or other purposes.

Common Pleas

A term used to describe a general jurisdiction trial court in some U.S. states.