In pooling of interests accounting (no longer allowed), a taxable transaction usually resulted.

Question

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Pooling of interests accounting was a method used for business combinations that treated the entities as if they had always been a single company. It did not result in a taxable transaction because it was accounted for as if the two companies had always been one, avoiding the recognition of goodwill and other adjustments that might result in taxes.

In Pooling of Interests Accounting (No Longer Allowed), a Taxable