which of the following is not true of purchase accounting?

a) all liabilities are transferred at the NPV of their future cash payments

b) total purchase price paid for the target firm is reflected on the books of the combined companies

c) goodwill equals the difference between the purchase price paid for the target firm and the book value of acquired assets

d) the cost of the acquired entity becomes the new basis for recording the acquirer's investment in the assets of the target company

e) goodwill must be reduced if it is believed to be impaired