P Corporation wants to acquire the business of Intellinet, Inc., a corporation owned by two founder-shareholders. The Intellinet shareholders do not want to pay U.S. tax (either individually or at the corporate level) on the acquisition.

a. What options are available if P Corporation wants to acquire the assets of Intellinet, but wants to use cash and is required to assume certain liabilities of Intellinet?

b. What options are available if P Corporation wants to acquire the stock of Intellinet, but wants to use some cash in the acquisition?

c. Assuming the transactions are tax-free, what are the general tax consequences to P Corporation, Intellinet, and the shareholders of each entity?