A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer. Based on your understanding of the impact of takeover bids on the target firm and the acquiring firm, review the diagram below and check which of the following statements are correct. Diagram: Merger Tax Effects A. Statements Check all that apply. The acquiring firm depreciates acquired assets at the old rate. The acquiring firm adds acquired assets to its books at their book values. Target stockholders tender their shares, receive cash, and pay personal taxes on realized capital gain. Goodwill is created for tax purposes. 8. Taxes and takeover bids In a merger, the acquiring firm can either pay in cash or make a stock offer. The acquirer can purchase the target firm's assets or buy shares directly from the target firm's shareholders. Consider the following statement about the impact of the takeover bid structure: The structure of the takeover bid affects the types of federal and state regulations to which the acquiring firm will be subjected. Is this statement true or false? True False