Which of the following statements best describes the continuity of interest principle as it applies to a tax-deferred acquisition?

A) Continuity of interest requires each shareholder to receive at least 40 percent of the consideration received in equity the acquirer.

B) Continuity of interest requires shareholders to receive at least 40 percent of the consideration received in equity the acquirer.

C) Continuity of interest requires each shareholder to receive at least 80 percent of the consideration received in equity the acquirer.

D) Continuity of interest requires shareholders to receive at least 80 percent of the consideration received in equity the acquirer.

Explain.