In a transaction accounted for using the purchase method where cost is less than fair value, which statement is true? Negative goodwill is recorded. A deferred credit is recorded. Long-term assets of the acquired company are reduced in proportion to their fair values. Any excess is recorded as a deferred credit. Long-term assets of the acquired company are reduced in proportion to their fair values. Any excess is recorded as an extraordinary gain. Long-term assets and liabilities of the acquired company are reduced in proportion to their fair values. Any excess is recorded as an extraordinary gain.