How Should the Acquisition Cost of a Business Combination Be

How should the acquisition cost of a Business Combination be allocated prior to preparing Consolidated Financial Statements?

A) The difference between the acquisition cost and the book values of the acquirer's identifiable assets should be treated as goodwill.
B) The acquisition cost should be allocated to the acquired company's identifiable assets and liabilities to bring them to their fair value.
C) The acquisition cost should be reflected as an increase in the acquirer's Investment (in the subsidiary) account.
D) The treatment of the acquisition cost depends largely on the type of consideration given by the acquirer.