The Liu Corporation Acquired the Chen Corporation by Buying All

The Liu Corporation acquired the Chen Corporation by buying all of the Chen Corporation's stock. The management of Liu wants to use "acquisition accounting" to manage earnings. It wants to report high future earnings. Which of the following actions will help it report higher future earnings?

A) Record a very high value of the equipment of Chen that it bought
B) Record a very high value of the inventories of Chen that it bought
C) Record a very low liability for warranties on the products Chen sold before the acquisition
D) Record a very high value for contingent liabilities related to lawsuits against Chen