P Company Purchased the Net Assets of S Company for $225,000.On

Multiple Choice

P Company purchased the net assets of S Company for $225,000.On the date of P's purchase,S Company had no investments in marketable securities and $30,000 (book and fair value) of liabilities.The fair values of S Company's assets,when acquired,were: How should the $45,000 difference between the fair value of the net assets acquired ($270,000) and the consideration paid ($225,000) be accounted for by P Company?

A) The noncurrent assets should be recorded at $ 135,000.
B) The $45,000 difference should be credited to retained earnings.
C) The current assets should be recorded at $102,000,and the noncurrent assets should be recorded at $153,000.
D) An ordinary gain of $45,000 should be recorded.