In $2026,$ Sunland Company purchased the net assets of Culver Corporation for $$2217600.$ On the date of the transaction, Culver had

$$604800$ of liabilities. The fair value of Culver's assets when acquired were as follows:

How should the $$806400$ difference between the fair value of the net assets acquired $($ $$3024000)$ and the cost $($$$2217600)$ be

accounted for by Sunland?

A deferred credit of $$806400$ should be set up and then amortized to income over a period not to exceed forty years.

The $$806400$ difference should be credited to retained earnings.

The $$806400$ difference should be recognized as a gain.

The current assets should be recorded at $$1088640$ and the noncurrent assets should be recorded at $$1733760.$