In general, which of the following statements about the income tax implications of the form of a business combination is true?

A) An acquisition of shares is generally better for the acquirer but worse for the vendor.
B) An acquisition of net assets is generally better for the acquirer but worse for the vendor.
C) An acquisition of shares is generally better for both the acquirer and the vendor.
D) An acquisition of net assets is generally better for both the acquirer and the vendor

In general, an acquisition of net assets is better for the acquirer as they can step up the basis of the acquired assets for tax purposes. This results in higher tax deductions and potentially lower future tax liabilities. On the other hand, an acquisition of shares may result in fewer tax benefits for the acquirer. For the vendor, an acquisition of shares may result in lower capital gains taxes compared to an acquisition of net assets. However, there may be differences in tax implications depending on the specific circumstances of the business combination.