Which one of the following statements is not true ?

[A] When there is one liquidation and one formation it is known as external construction

[B] Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger

[C] Under the pooling of interest method, the transferee company incorporates the assets and liabilities of the transferor company at book value

[D] The vendor company transfers preliminary expenses (at the time of absorption) to equity shareholders’ account