Direct Combination Costs and Stock Issuance Costs Are Often Incurred

Direct combination costs and stock issuance costs are often incurred in the process of making a controlling investment in another company. How should those costs be accounted for in a pre-2009 purchase transaction? $$\begin{array} { | l | l | l | } \hline & \text { Direct Combination Costs } & \text { Stock Issuance Costs } \\\hline \text { A) } & \text { Increase Investment } & \text { Decrease Investment } \\\hline \text { B) } & \text { Increase Investment } & \text { Decrease Paid-In Capital } \\\hline \text { C) } & \text { Increase Investment } & \text { Increase Expenses } \\\hline \text { D) } & \text { Decrease Paid-In Capital } & \text { Increase Investment } \\\hline \text { E) } & \text { Increase Expenses } & \text { Decrease Investment } \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D
E) Option E