Which of the Following Statements Does Not Describe a Motivation

question 71

Multiple Choice

Which of the following statements does not describe a motivation by the buyer or seller in the acquisition or sale of a company?

• A)Buyers generally prefer to buy assets because they can take a tax basis in the assets acquired equal to the assets' fair market value.
• B)Buyers generally prefer to buy stock because they can take a tax basis in the underlying assets of the company acquired equal to the assets' fair market value.
• C)Sellers generally prefer to sell assets in a tax-deferred reorganization to avoid higher tax rates imposed on gains from the sale of noncapital assets.
• D)Sellers generally prefer to sell stock because they can recognize capital gain on the sale taxed at preferential rates.

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Definitions:

Very Unpleasant Conversation

A dialogue involving disagreeable, uncomfortable, or distressing topics that may lead to emotional discomfort among participants.

Incentives

Incentives are external rewards or penalties that motivate individuals to take specific actions or behave in certain ways.

Motivate

The process of stimulating interest or enthusiasm for doing something, often leading to increased effort and goal-directed behavior.

Monetary Bonus

A financial reward given to an employee beyond their regular salary or wages.