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The tax status of the transaction may influence the purchase price by a. Raising the price demanded by the seller to offset potential tax liabilities.

The tax status of the transaction may influence the purchase price by

a.

Raising the price demanded by the seller to offset potential tax liabilities.

b.

Forcing the buyer to agree to defer a portion of the purchase price.

c.

Reducing the price offered by the bidder to offset potential tax liabilities.

d.

Forcing the seller to agree to defer a portion of the purchase price.

e.

Causing the buyer to lower the purchase price if the transaction is taxable to the target firms shareholders.

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