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In a statutory merger, a. All known and unknown assets and liabilities are automatically transferred to...

In a statutory merger,

a.

All known and unknown assets and liabilities are automatically transferred to the buyer except for those the seller agrees to retain.
b.

The total consideration received by the target’s shareholders is automatically taxable.
c.

Only known and unknown assets are transferred to the buyer.
d.

The total consideration received by the target’s shareholders is automatically not taxable, that is, tax-deferred.
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Answer #1

In a statutory merger, when the bidder pays for the target in the form of cash or stock. He automatically gets taxed in the form of capital gains. While the payment made by the bidder is not taxed.  

So the correct answer is B

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