The correct answer is: D. The assets and liabilities of the transferor company.
Under the purchase method of accounting, the transferee company incorporates in its books the assets and liabilities of the transferor company at their fair values on the date of acquisition. The purchase price is allocated to the assets and liabilities acquired based on their fair values. Any difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill.
Option A is incorrect because it includes reserves. Reserves are not assets or liabilities, but rather are adjustments to equity.
Option B is incorrect because it excludes statutory reserves. Statutory reserves are a type of reserve that is required by law to be maintained by a company.
Option C is incorrect because it includes both assets and liabilities, as well as reserves. Reserves are not assets or liabilities, but rather are adjustments to equity.