The IRS Is Most Apt to Disallow an Acquisition If

question 52

Multiple Choice

The IRS is most apt to disallow an acquisition if it:

• A)moves the foreign operations of the acquired firm to the U.S.
• B)is totally financed with debt.
• C)is designed primarily to reduce federal taxes.
• D)is designed to transfer technology in a tax-free transfer.
• E)allows shareholders to avoid currently realizing their gains from a stock acquisition.