Asena Corporation Owns 30% of the Voting Stock of Tapestry

Asena Corporation owns 30% of the voting stock of Tapestry Company, and reports it as an equity method investment. It then pays cash to acquire the remaining 70% of Tapestry's voting stock. Which statement is false concerning reporting for the acquisition of the remaining 70%, if the acquisition is reported as a merger?

A) If the total acquisition cost is greater than the fair value of identifiable assets acquired, goodwill is recognized.
B) The equity method investment is written off as a reduction in additional paid-in capital.
C) The assets and liabilities of Tapestry are revalued to fair value.
D) The assets and liabilities of Tapestry will now appear on Asena's books.