Based on the information, under the acquisition method:

A. $22,000 of stock issue costs are treated as a reduction in the issue price.

B. $22,000 of stock issue costs are expenses.

C. $66,000 of stock issue costs are classified as goodwill.

D. $66,000 of stock issue costs are expensed.

*please show computations*

Miguel Corporation and Forest Company merged as of January 1, 20X3. Miguel paid finder's fees of $36,000 and legal fees of $8,000. Miguel also paid audit fees related to the stock issuance of $12,000, stock registration fees of $7,000, and stock listing application fees of $3,000