There are a number of key tax effects that must be considered during a business divestiture and acquisition, from the perspectives of both the vendor and the purchaser.
Required:
Match the following tax considerations with the most appropriate answer from the list below.Use each answer only once.
Tax consideration:
A.A change in control will restrict the use of losses._____
B.Capital gains and business income may occur in the business, reducing the after-tax proceeds._____
C.The capital gain deduction may apply._____
D.The cost base for assets is based on their market value._____
1) A key tax consideration for the sale of shares from the vendor's perspective.
2) A key tax consideration for the sale of assets from the vendor's perspective.
3) A key tax consideration for the purchase of assets from the purchaser's perspective.
4) A key tax consideration for the purchase of shares from the purchaser's perspective.

Question

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The Answer of There are a number of key tax effects that must be considered during a business divestiture and acquisition, from the perspectives of both the vendor and the purchaser.
Required:
Match the following tax considerations with the most appropriate answer from the list below.Use each answer only once.
Tax consideration:
A.A change in control will restrict the use of losses._____
B.Capital gains and business income may occur in the business, reducing the after-tax proceeds._____
C.The capital gain deduction may apply._____
D.The cost base for assets is based on their market value._____
1) A key tax consideration for the sale of shares from the vendor's perspective.
2) A key tax consideration for the sale of assets from the vendor's perspective.
3) A key tax consideration for the purchase of assets from the purchaser's perspective.
4) A key tax consideration for the purchase of shares from the purchaser's perspective.

There Are a Number of Key Tax Effects That Must