Rugby, Inc

Multiple Choice

Rugby, Inc.issues 20,000 shares of $10 par value common stock with a market value of $15 each for Soccer Company.Rugby, Inc.pays related acquisition costs of $50,000.The total fair value of net assets acquired from Soccer Company is $450,000.Which of the following is true related to recording the purchase and related costs:​

A) ​Debit a loss for $150,000 on the acquisition of the business
B) ​Debit goodwill for $250,000 above par value on the acquisition of the business
C) ​Credit a gain for $150,000 on the acquisition of the business and capitalize the $55,000 of acquisition costs
D) ​Credit a gain for $150,000 on the acquisition of the business and expense the acquisition costs.