Bale Co. incurred $100,000 of acquisition costs related to the purchase of the net assets of Dixon Co. the $100,000 should be

1. Allocated on a pro rate basis to the nonmonetary assets acquired.

2. Capitalized as part of goodwill and tested annually for impairment.

3. Capitalized as another asset and amortized over 5 years.

4. Expensed as incurred in the current period.