The $20,000 legal and accounting fees would be recognized as amount of asset which is why it's not included in the amount of liability? Also the answer is $150,000 because we recognize the amount of liability at fair value in a business combination?

On July 1, 2009, Lazer, Inc. acquired all of the assets, with a fair value of $400,000, and liabilities, with a fair value of $150,000, of Tipco, Inc. for $250,000 cash. In addition, Lazer paid $20,000 in legal and accounting fees for the combination and expects to pay $50,000 to close one of Tipco's plants and relocate its employees. Which one of the following is the amount of liability that Lazer should recognize in recording the business combination? O $- 0 - (no liability) Your Answer $150,000 $170,000 $200,000 You Answered Correctly! Lazer will recognize $150,000 in liabilities, the fair value of the amount acquired from Tipco. The $20,000 legal and accounting fees will be expensed as cost of carrying out the combination. The expected cost of closing one of Tipco's plants and relocating its employees will not be recognized until there is an actual liability