During 2020, Spokane Ltd. purchased the net assets of Tacoma Corp. for $635,000. On the date of the transaction, Tacoma reported $200,000 in liabilities. As well, the fair value of Tacoma's assets were: Current assets $360,000 Noncurrent assets 840.000 $1,200,000 How should the difference between the fair value of the net assets acquired and the cost be accounted for by Spokane? O The difference should be credited to retained earnings. O The difference should be recognized as a gain in net income. The noncurrent assets should be reduced appropriately. O The difference should be prorated between the current and the noncurrent assets