A buyer generally prefers an asset sale to get better

depreciation deductions post sale.

True
False

True

False. A buyer generally prefers an asset sale to get better depreciation deductions post-sale. In an asset sale, the buyer can allocate the purchase price to the individual assets, which allows for higher depreciation deductions in the future. In a stock sale, the buyer does not get to step up the basis in the assets and therefore cannot take advantage of higher depreciation deductions. Therefore, a buyer generally prefers an asset sale rather than a stock sale.