Question: Ross Corporation recorded a provisional amount for an identifiable asset at the date of its acquisition of Layton Inc. because the assets fair value was

Ross Corporation recorded a provisional amount for an identifiable asset at the date of its acquisition of Layton Inc.

because the asset’s fair value was uncertain. Before the measurement period ends, Ross obtains new information that indicates that the asset was overvalued by $20,000. How should Ross report the effects of this new information?

a. As an expense in the current period income statement.

b. As an extraordinary loss on the current period income statement.

c. As a reduction in recorded goodwill.

d. As a gain from bargain purchase.

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