from the target firm's shareholders. Consider the following statement about the impact of the takeover bid structure: The structure of the takeover bid affects the tax treatment of both the acquiring firm and the target firm's stockholders. Is this statement true or false? True False 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 firm and the acquiring firm, review the diagram below and check which statements are correct. Diagram: Merger Tax Effects The transaction is taxable, Payment is made mostly Dlagram: Merger Tax Effects Payment is made mostly in cash by purchasing the target firm's stock. The transaction is taxable, and transactions are recorded at book value. Statements Check all that apply. Goodwill is created for tax purposes. Target stockholders tender their shares, receive cash, and pay personal taxes on realized capital gain. The acquiring firm adds acquired assets to its books at their book values. The acquiring firm depreciates acquired assets at the old rate