Which one of the following statements is incorrect?

a. In an asset acquisition, the books of the acquired company are closed out, and its assets and liabilities are transferred to the books of the acquirer.

b. In many cases, stock acquisitions entail lower total cost than asset acquisitions.

c. Regulations pertaining to one of the firms do not automatically extend to the en- tire merged entity in a stock acquisition.

d. A stock acquisition occurs when one corporation pays cash, issues stock, or is- sues debt for all or part of the voting stock of another company; and the acquired company dissolves and ceases to exist as a separate legal entity.