Which of the following statements is (are) true with respect to the effects of the various business combination accounting methods will have on the balance sheet?

I. If the acquiring company pays more than the fair market value of the acquired company, then the book value of the merged firm will be higher under the pooling method than it would be under the acquisition method.
II. U.S. GAAP allows the amortization of goodwill if the acquisition method is being used.
III. Only the pooling method requires that combined firm restate its pre-merger years' financial statements on a consolidated basis.

Explanation: I is incorrect because if the acquiring company pays more than the fair market value of the acquired company, then the book value of the merged firm will be lower under the pooling method than it would be under the acquisition method.

II is incorrect because U.S. GAAP does not allow for the amortization of goodwill at all.