In General, Which of the Following Statements About the Income

question 45

Multiple Choice

In general, which of the following statements about the income tax implications of the form of a business combination is true?

• A) An acquisition of shares is generally better for the acquirer but worse for the vendor.
• B) An acquisition of net assets is generally better for the acquirer but worse for the vendor.
• C) An acquisition of shares is generally better for both the acquirer and the vendor.
• D) An acquisition of net assets is generally better for both the acquirer and the vendor

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Definitions:

Court Order

A formal instruction issued by a judge or court requiring a person to do or not do something.

DeJonge v. Oregon

A landmark 1937 U.S. Supreme Court case that concluded that the First Amendment's freedom of assembly clause applies to state governments through the Due Process Clause of the Fourteenth Amendment.

Everson v. Board

A landmark Supreme Court case in 1947 that addressed the separation of church and state, ruling that state funding for transportation to religious schools did not violate the Establishment Clause of the First Amendment.

Due Process Clause

A constitutional guarantee in the Fifth and Fourteenth Amendments of the United States Constitution that laws and legal proceedings must not be arbitrary and must be conducted fairly.