Which of the Following Statements Is True Regarding the Pooling

Multiple Choice

Which of the following statements is true regarding the pooling of interests method of accounting for a business combination?

A) Net assets of the acquired company are reported at their book values.
B) Net assets of the acquired company are reported at their fair values.
C) Any goodwill associated with the acquisition has an indefinite life.
D) Subsequent amounts of cost in excess of fair value of net assets are amortized over their useful lives.
E) Indirect costs reduce additional paid-in capital.