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 Transaction is taxable. Payment is made mostly in cash by purchasing the target firm's assets. A A. Statements Check all that apply. The acquiring firm does not create goodwill for tax purposes. The acquiring firm adds acquired assets to its books at their appraised values. The target firm incurs immediate tax liability for the amount of gain (difference between purchase price and book value). The target firm distributes a liquidating dividend to its shareholders of money left over after paying taxes