Which of the Following Situations Best Describes a Business Combination

Multiple Choice

Which of the following situations best describes a business combination to be accounted for as a statutory merger?

A) Both companies in a combination continue to operate as separate,but related,legal entities.
B) Only one of the combining companies survives and the other loses its separate identity.
C) Two companies combine to form a new third company,and the original two companies are dissolved.
D) One company transfers assets to another company it has created.