MrAnd MrsSchulte Paid a $750,000 Lump-Sum Price to Purchase a Business

Multiple Choice

Mr.and Mrs.Schulte paid a $750,000 lump-sum price to purchase a business.At date of purchase,the appraised FMVs of the balance sheet assets were: Which of the following statements is true?

A) The Schultes must allocated the $750,000 cost to the balance sheet assets based on the assets' relative FMV.
B) The Schultes must capitalize $150,000 of the cost to nonamortizable goodwill.
C) The Schultes may deduct $150,000 of the cost as business goodwill.
D) None of the above is true.