1. The X Company acquired 100% of the shares of the Y Company for cash consideration of $2,500,000.Due to depressed economic conditions, X was able to pay less than fair value for the identifiable net assets.Negative goodwill of $100,000 remained unallocated after X adjusted property, plant and equipment to zero at the acquisition date.Which of the following could be used to record the $100,000 in accordance with GAAP?

a)Reduce future income taxes

b)Reduce prepaid assets related to the employee pension plan

c)Record a reduction to accounts receivable

d)Record a gain to retained earnings.