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