The Main Difference to Shareholders Between a Tax-Free and a Taxable

Multiple Choice

The main difference to shareholders between a tax-free and a taxable acquisition is that
I.in a tax-free acquisition the shares are only exchanged, while in a taxable transaction the shares are considered sold and realized capital gains or losses are taxed;
II.in a tax-free acquisition a capital gain or loss is realized and then new shares are issued; in a taxable transaction the assets are revalued, taxed on any capital gains or losses, and then shares are exchanged;
III.in a tax-free acquisition the shareholders simply take the cash and depart, while in a taxable transaction the shareholders must stay with the new entity

A) I only
B) II only
C) III only
D) I and III only