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.

Question

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.

Quizplus · Accepted Answer

The Answer is B

A Tax Advantage of Business Combination Can Occur When the Existing