Which Two of These Are Required for an Acquisition to Be

Multiple Choice

Which two of these are required for an acquisition to be considered tax-free? I.The bidder must purchase the target firm for less than its current market value.
II.The acquisition must have a business purpose other than the avoidance of taxes.
III.The stockholders in the target firm must retain an equity interest in the bidder.
IV.The acquisition must be a lump sum cash transaction.

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