DEF IncIs Contemplating a Business Combination Involving GHI Inc

Multiple Choice

DEF Inc.is contemplating a business combination involving GHI Inc.DEF can either purchase the assets and liabilities of GHI Inc,or it can engage in a Pooling of Interests with GHI Inc.Assuming that the Fair Market Values of GHI's identifiable assets are equal to their book values,which method would show a higher net income for the consolidated entity (assume that the Pooling of Interests Method is allowable) ?

A) The Purchase Method)
B) The Pooling of Interests Method)
C) The Purchase Method and The Pooling of Interests Method would show the same income.
D) It depends on the accounting policies used by each company.