What are the tax consequences of a taxable merger?
A. Selling shareholders can defer any capital gain until they sell their shares in the merged company
B. Depreciation tax shield is unchanged by merger
C. Selling shareholders must recognize any capital gain
D. Depreciable value of assets will remain unchanged
Answer:C
What are the tax consequences of a taxable merger?
A. Selling shareholders can defer any capital gain until they sell their shares in the merged company B. Depreciation tax shield is unchanged by merger C. Selling shareholders must recognize any capital gain D. Depreciable value of assets will remain unchanged