Research by Auerbach and Poterba and by Altshuler and Auerbach on tax loss carry forwards indicate that the following tax-related factor may offset the otherwise full value of the targets losses:

a. Failure to achieve synergistic gains

b. Improved research and development

c. Expiration

d. Post-acquisition litigation

Research by Scholes and Wolfson on M&As before 1981, between 1981 and 1986, and after 1986 found:

	a.	No differences in M&A activity over the 19811986 period compared the pre-1981
	b.	Intensified level of merger activity to tax motives that were put in place with the 1981 Act and eliminated by the 1986 Act
	c.	No clear trends in data
	d.	None of the above

In the United States, up until 2001, there was only one accepted accounting treatment for mergers and acquisitionspooling.

True

False

The United States just lowered its corporate tax rates and this should greatly reduce, if not eliminate, the demand for tax-based corporate inversion?

True

False