The Purchase Accounting Method for Mergers Require That

The purchase accounting method for mergers require that:

A) the excess of the purchase price over the fair market value of the target firm be recorded
As a one-time expense on the income statement of the acquiring firm.
B) goodwill be amortized on a yearly basis.
C) the equity of the acquiring firm be reduced by the excess of the purchase price over the
Fair market value of the target firm.
D) the assets of the target firm be recorded at their fair market value on the balance sheet of
The acquiring firm.
E) the excess amount paid for the target firm be recorded as a tangible asset on the books of
The acquiring firm.