By acquiring assets, the acquiring corporation usually receives a step-up in the tax basis of assets to fair market value (assuming the assets have appreciated in value).
If the asset is depreciable or amortizable, the acquiring corporation receives an increased tax deduction because of the higher basis.
In a stock purchase, the acquiring corporation usually carries over the historic cost of the assets.
“By purchasing the target corporation’s assets in a taxable asset acquisition, the acquiring corporation gets a step-up in basis of the assets to fair market value. To the extent the acquiring
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