_____ in Purchase Accounting, What Is the Appropriate Manner of Accounting

Multiple Choice

_____ In purchase accounting, what is the appropriate manner of accounting for a bargain purchase element (BPE) ?

A) Proportionately reduce values assigned to nonmonetary assets and report any remaining unextinguished bargain purchase element as a deferred credit in the balance sheet.
B) Proportionately reduce values assigned to noncurrent assets and report any remaining unextinguished bargain purchase element as a deferred credit in the balance sheet.
C) Proportionately reduce values assigned to nonmonetary assets other than long-term investments and report any remaining unextinguished bargain purchase element as a deferred credit in the balance sheet.
D) Proportionately reduce values assigned to certain assets and report any remaining unextinguished bargain purchase element as an extraordinary gain (if material) in the income statement.
E) None of the above.