Amgen is acquiring all assets and liabilities of Horizon in a cash asset purchase transaction in which Amgen is paying $6,000. Horizon' shareholders have a tax basis in their stock of $500, and Horizon has net assets (assets minus liabilities) with a tax basis of $1,000. Consider the following assumptions: The tax rate appropriate for individuals on capital gains is 20% and for ordinary income is 35%; both companies' corporate tax rate is 25%; any step-up amount in the asset basis is depreciated/amortized over ten years using the straight-line method; the after-tax discount rate is 5%.

The taxes paid by target company, Horizon, in this transaction are:

What are tax implications of this transaction to the buyer, Amgen?