Which statement regarding the allocation of lump$-$sum purchase price to the acquired assets of an ongoing business is correct?

The allocation of purchase price uses the residual method. Any purchase price in excess of the value of identifiable assets is allocated proportionately to such assets. The allocation of purchase price separates acquired assets into three asset classes $$ tangible assets, intangible assets other than goodwill, and goodwill. The purchase price allocation does not include acquisition costs such as appraisal fees, transfer taxes, and title costs.