DLT's chief operating officer is negotiating the acquisition of a controlling interest in the stock of AA Inc. from Mr. and Mrs. A. The director of tax suggested that the acquisition be structured as a nontaxable transaction to Mr. and Mrs. A. The CEO rejected the suggestion by saying, "Since DLT is the purchaser, our negotiating team doesn't really care if the structure of the acquisition saves taxes for the seller."
Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question