Which one of the following statements concerning taxes and acquisitions is correct? 1) In a tax-free acquisition, the shareholders in the acquiring firm maintain their status quo while the shareholders in the target firm are treated as if they sold their shares. In a taxable acquisition, any gains or losses of the target shareholders will be taxed as ordinary income. 3) If the shareholders of the target firm receive shares of the acquiring firm in an acquisition, the acquisition is generally considered a taxable acquisition. O 4) In a taxable acquisition, the shareholders in both the target firm and the acquiring firm are treated as if they sold their shares and any capital gains are subject to taxation. 5) In a taxable acquisition, the shareholders in the target firm are treated as though they sold their shares and any capital gains or losses will be realized. Assume that 20% of the shareholders of ABC Co. are extremely unhappy with the company's management and would like to replace all of the senior executives. To do this, they need control over the board of directors. This situation has a high probability of leading to a: 1) Conglomerate acquisition. 2) Going private transaction. 3) Management buyout. 4) Proxy contest. 5) Pooling of interests