In a business combination accounted for as an acquisition
the appraised values of the identifiable assets acquired exceeded
the acquisition price. How should the excess appraised value be
reported?

(d) When the fair value of identifiable assets acquired in
a business acquisition exceeds the sum of the consideration given
and the fair value of previously held interest plus the fair value of
noncontrolling interests, the difference is recorded as a bargain
purchase. Answer (d) is correct because a gain is recognized on
the income statement in the current period. Answer (a) is incorrect
because negative goodwill is not recorded. Answer (b) is
incorrect because the difference is not treated as a part of additional
paid-in capital. Answer (c) is incorrect because it describes
the accounting treatment no longer allowed.