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Payne Company acquired a subsidiary in a combination accounted for as a purchase. The appraisal value of the identifiable net assets acquired exceeded the acquisition
Payne Company acquired a subsidiary in a combination accounted for as a purchase. The appraisal value of the identifiable net assets acquired exceeded the acquisition price. In the preparation of consolidated financial statements the excess was assigned to the appropriate assets, reducing them to zero. Any remaining excess should be recognized in the consolidated financial statements as:
A. | a deferred credit. | |
B. | negative goodwill. | |
C. | an extraordinary gain. | |
D. | a prior period adjustment. |
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