Which of the following is/are true about accounting for business combinations when stock is issued by the acquirer (P) to acquire the stock of the acquiree (S)? 1. Costs related to arranging the business combination are added (capitalized) to the Investment in 'S' account. li. Stock issue costs are added (capitalized) to the Investment in 'S' account. III. Costs related to arranging the business combination are expensed. IV. Stock issue costs are treated as a reduction in the issue price (i.e., a reduction in APIC). A) III and IV only B) Ill only C) I and II only D) only E) II and IV only