If the Transaction Is Tax-Free, the Acquiring Company Is Able

question 40

True/False

If the transaction is tax-free, the acquiring company is able to transfer or carry over the target's tax basis to its own financial statements.

---

Definitions:

Subcontracting

The practice of assigning part of the obligations and tasks under a contract to another party, often to specialize in particular tasks or save on costs.

Inventory

Describes the goods and materials that a business holds for the ultimate goal of resale or production.

Overtime

Additional hours worked beyond the standard working hours, often resulting in higher pay rates.

Master Production Schedule

A plan for the production of individual items at specific times in the future.