Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

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Pooling Method
Flaherty Company entered into a business combination with Steeley Company in March 2001.The combination was accounted for as a pooling of interests.Registration fees were incurred in issuing common stock in this combination.Other costs, such as legal and accounting fees, were also paid.
a.In the business combination accounted for as a pooling of interests, how should the assets and liabilities of the two companies be included within consolidated statements What was the rationale for accounting for a business combination as a pooling of interests
b.In the business combination accounted for as a pooling of interests, how were the registration fees and the other direct costs recorded
c.In the business combination accounted for as a pooling of interests, how were the results of the operations for 2001 reported
(AICPA adapted)