An acquiring company wants to maximize its consolidated current and future income. It acquires another company for a price well in excess of the company's book value. Which allocation of the excess of acquisition cost over book value will best meet the company's earnings goals?
a) Allocate the excess to goodwill.
b) Allocate the excess to trademarks with indefinite lives.
c) Allocate the excess to land.
d) Allocate the excess to in-process research and development.