One Company Is Considering Entering into a Business Combination with Another.The

Multiple Choice

One company is considering entering into a business combination with another.The potential acquirer wishes to acquire the subsidiary's assets and liabilities but wishes to prepare Consolidated Financial Statements using the Fair Market Values of its own assets and liabilities as well of those of its potential subsidiary.Can this be accomplished?

A) Yes,this is permissible under the Pooling of Interests method)
B) Yes,this is permissible under the Purchase Method under certain circumstances.
C) Yes,this would be possible,but only if the New Entity Method is used)
D) No,this would not be possible under any circumstances as it would be a violation of GAAP.