How is consideration value determined? Explain how the gains from acquisition are shared by the acquiring firm and the target firm. Firm A has a taxable income of Rs 1,40,000 and Firm B has incurred a...

How is consideration value determined? Explain how the gains from acquisition are shared by the acquiring firm and the target firm.

Firm A has a taxable income of Rs 1,40,000 and Firm B has incurred a loss of Rs 20,000. The tax rate is 30%. Find out if there is any tax saving as a sequel to the merger of A and B.