Robinson Corporation's purchase of stock of Smith Company gave Robinson voting control over Smith. A portion of the amount Robinson paid reflects the fact that Smith's inventories have a market value in excess of their book value. How should this portion of the cost be accounted for by Robinson Corporation?

Amortized against investment revenue over the remaining useful life of the investment Included in the carrying value of the investment until disposition of the stock

Added to the inventory cost on Robinson's consolidated balance sheet

Reported as goodwill on the balance sheet of Robinson Corporation