Which statement about negative goodwill is true?

A)If noncurrent assets are reduced to zero, the remaining amount of negative goodwill s recorded as a deferred charge

B)Negative goodwill results when the cash paid for a company exceeds the fair market value of the net assets acquired

C)Record a gain equal to the difference between FMV of net assets and purchase price of the business

D)Negative goodwill should first be allocated proportionately to reduce the cost of all assets acquired on the basis of relative market values

In non-monetary exchanges the asset received is valued based on the fair value of the asset given up except:

A)When there is an exchange of assets having no commercial substance

B)When the fair value of the asset given is not determinable

C)When there are exchanges of assets having no commercial substance

D)When any A,B,or C above occur

Average accumulated expenditures:

A)Are irrelevant if the company's total outstanding debt is less than total costs of construction

B)May be computed as a simple average if all construction expenditures are made at the end of the period

C)Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt

D)All of the above are true statements

Research and development (R&D) costs:

A)Generally pertain to activities that occur prior to the start of production

B)May be expensed or capitalized,at the option of the reporting entity

C)Must be capitalized and amortized

D)Are always expensed in the period incurred unless alternative uses are available