With pooling of interests, total stockholders' equity of the combined enterprise would be equal to the sum of the separate companies' equities immediately prior to the combination.

Question

Quizplus · Accepted Answer

This is true for pooling of interests method of accounting for business combinations. Under this method, the assets and liabilities of the acquiring company and the target company are combined, and the book value of the combined entity's equity is equal to the sum of the separate companies' equity.

With Pooling of Interests, Total Stockholders' Equity of the Combined