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A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer. Based on your understanding of the impact

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A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer. Based on your understanding of the impact of takeover bids on the target and the acquining firms, answer the following question and then check which statements are correct. The acquirer purchases the target firm's shares with either cash or nonvoting securities, such as debt securities, nonvoting preferred stock, or warrents. This transaction is for the target firm's shareholders: Statements Check all that apply. If the acquiring firm makes a partial cash down payment, the transaction is treated as an installment purchase, and the shareholders can spread their tax liability over the acquining firm's payment period. Target shareholders tender their shares, receive their cash, and pay personal taxes on any realized capital gains: The acquining firm adds the acquired assets to its books at their book values. The acquiring firm adds the acquired assets to its books at their appraised fair market values. The purchase will be recorded using the pooling of interests method rather than the purchase method

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