A business combination is accounted for properly as an acquisition. Direct costs of combination, other than registration and issuance costs of equity securities, should be:
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a. | Deducted directly from the retained earnings of the combined corporation. | |
b. | Included in the acquisition cost to be allocated to identifiable assets according to their fair values. | |
c. | Capitalized as a deferred charge and amortized. | |
d. | Deducted in determining the net income of the combined corporation for the period in which the costs were incurred. |
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