During 2021, Carla Vista Company purchased the net assets of Martinez Corporation for $2195600. On the date of the transaction, Martinez had $598800 of liabilities. The fair value of Martinez's assets when acquired were as follows: Current assets $1077840 Noncurrent assets 2514960 $3592800 How should the $798400 difference between the fair value of the net assets acquired ($2994000) and the cost ($2195600) be accounted for by Carla Vista? A deferred credit of $798400 should be set up and then amortized to income over a period not to exceed forty years. The $798400 difference should be recognized as a gain. The $798400 difference should be credited to retained earnings. The current assets should be recorded at $1077840 and the noncurrent assets should be recorded at $1716560