Gabraile Company Acquired Itsy Inc

Multiple Choice

Gabraile Company acquired Itsy Inc. for a price that was substantially less than the fair value of the identifiable net assets acquired. The difference between the fair value of the net identifiable assets and the bargain purchase price is ________.

A) recorded as negative goodwill
B) reported as a gain that increases income from continuing operations
C) allocated to reduce carrying value for each purchased asset
D) reported as a gain that increases other comprehensive income