Often, the investor or investee will adopt a restructuring plan to achieve certain synergies from the acquisition. Certain restructuring costs are required for implementation of such a plan. Which of the following statements correctly describes the GAAP treatment of such costs?

Select one:

A$.$

A liability for restructuring costs expected to be incurred is included in the purchase price allocation at date of acquisition.

B$.$

Costs that the investor is not legally obligated to incur may be accrued at the acquisition date or expensed as incurred.

C$.$

Recognizing a restructuring obligation at date of acquisition results in early recognition of expense.

D$.$

If a restructuring plan is not already in place, the liability and related expense must be recognized subsequent to the acquisition.