1. Because a purchaser can use a target’s NOL carry forwards to offset the ordinary and capital gain and recapture tax on the sale of the target’s assets, it has been argued that this reduces the cost...

1. Because a purchaser can use a target’s NOL carry forwards to offset the ordinary and capital gain and recapture tax on the sale of the target’s assets, it has been argued that this reduces the cost of achieving a stepped-up basis in assets and makes it advantageous for the purchaser to acquire the target. Do you agree with this argument?

2. What are the nontax benefits, if any, of a stock acquisition? What are the nontax costs, if any, of a stock acquisition?

3. What are the nontax benefits, if any, of an asset acquisition? What are the nontax costs, if any, of an asset acquisition?