ACC 304 All Assignments ACC 304 All Assignments | Page 216

fair value of liabilities assumed exceeded the cost to Easton. Proper
accounting treatment by Easton is to report the excess amount as
a. a gain.
b. part of current income in the year of combination.
c. a deferred credit and amortize it.
d. paid-in capital.
46.
Purchased goodwill should
a. be written off as soon as possible against retained earnings.
b. be written off as soon as possible as an extraordinary item.
c. be written off by systematic charges as a regular operating expense
over the period benefited.