Acquisition costs such as the fees of accountants and lawyers that were necessary to negotiate and consummate the purchase are
A)recorded as a deferred asset and amortized over a period not to exceed 15 years
B)expensed if immaterial but capitalized and amortized if over 2% of the acquisition price
C)expensed in the period of the purchase
D)included as part of the price paid for the company purchased

Question

Acquisition costs such as the fees of accountants and lawyers that were necessary to negotiate and consummate the purchase are
A)​recorded as a deferred asset and amortized over a period not to exceed 15 years
B)​expensed if immaterial but capitalized and amortized if over 2% of the acquisition price
C)​expensed in the period of the purchase
D)​included as part of the price paid for the company purchased

Quizplus · Accepted Answer

Acquisition costs such as fees of accountants and lawyers should be expensed in the period of the purchase as per the generally accepted accounting principles (GAAP).

Acquisition Costs Such as the Fees of Accountants and Lawyers