Question:
As a member of JIM''s acquisition team, you have been asked to look at various forms of acquisitions.
Currently, it is JIM''s plan to acquire Mason Machining, Inc. by paying $6,500,000 in cash, but management would like to know what forms of acquisition are possible. Your research has determined that there are 3 types acquisitions/reorganizations.
They are as follows: TYPE A-merger or consolidation TYPE B-stock for stock and TYPE C-assets for stock.
Task:
Write a memo: *Explaining each of these types of acquisitions, and What are the main characteristics of each?
Assignment Objectives: *Explain the tax consequence of various strategies for mergers, acquisitions, and divestitures