Q. 5ABD Limited wishes to obtain control over the net assets of STD Inc. The Board of Directors of STD is willing to sell the business as a going concern. The executive committee of ABDs Board of Directors is considering the following options:

a) Buy all of the assets of STD for 6 million cash. ABD will also assume all of STDs liabilities.
b) Issue 300,000 new ABD shares to STD and take control of the assets and liabilities of STD. ABD shares are selling at 20 per share.
c) Issue 300,000 new ABD shares to the shareholders of STD in exchange for 100% of STDs outstanding shares.
d) ABD has two subsidiaries, Sub X and Sub Y. ABD (the parent) would buy 26% of the outstanding shares of STD from the STD shareholders, Sub X would purchase another 26%, and Sub Y would buy the remaining 48% of STD shares.