content area top Part 1 In a business combination, why does the buyer generally prefer to allocate as much of the purchase price to short-lived depreciable assets, ordinary assets such as inventory, and Sec. 197 intangible assets? Question content area bottom Part 1 A. Buyers generally prefer a liberal allocation of the purchase price to ordinary assets such as inventory because gross profit is reduced when the inventory is sold. B. Allocations to short-lived depreciable assets and Sec. 197 intangibles are preferred over allocations to land and other non-depreciable assets due to the acceleration of tax benefits obtained from the depreciation and amortization. C. Buyers generally prefer to allocate as much of the purchase price to short-lived depreciable assets, ordinary assets such as inventory, and Sec. 197 intangible assets because there are fewer recordkeeping requirements. D. Both A and B are correct