A Tax Advantage of Business Combination Can Occur When the Existing

question 1

Multiple Choice

A tax advantage of business combination can occur when the existing owner of a company sells out and receives:​

• A)​cash to defer the taxable gain as a "tax-free reorganization."
• B)​stock to defer the taxable gain as a "tax-free reorganization."
• C)​cash to create a taxable gain.
• D)​stock to create a taxable gain.

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