Which of the Following Is Not True of Taxable Asset

Multiple Choice

Which of the following is not true of taxable asset purchases?

A) Net operating losses carry over to the acquiring firm
B) The acquiring firm may step up its basis in the acquired assets.
C) The target firm is subject to recapture of tax credits and excess depreciation
D) Target firm shareholders' are subject to a potential immediate tax liability
E) Target firm net operating losses and tax credits cannot be transferred to the acquiring firm