If the Value Implied by the Purchase Price of an Acquired

Multiple Choice

If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be

A) allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain.
B) allocated to reduce current and long-lived assets.
C) allocated to reduce long-lived assets.
D) accounted for as goodwill.