In $2026,$ Wildhorse Company purchased the net assets of Swifty Corporation for $$2224200.$ On the date of the transaction, Swifty had

$$606600$ of liabilities. The fair value of Swifty's assets when acquired were as follows:

How should the $$808800$ difference between the fair value of the net assets acquired $($ $$3033000)$ and the cost $($ $$2224200)$ be

accounted for by Wildhorse?

The $$808800$ difference should be credited to retained earnings.

A deferred credit of $$808800$ should be set up and then amortized to income over a period not to exceed forty years.

The current assets should be recorded at $$1091880$ and the noncurrent assets should be recorded at $$1738920.$

The $$808800$ difference should be recognized as a gain.