X company acquired the net assets of Y company during 20x5. Purchase price was $800,000. On the date of the transaction, Y had no longterm investments in marketable equity securities and $400,000 liabilities. the fair value of cY assets on the acquisition date was:

Current assets: 800000
Noncurrent assets: 600000
Total 1400000

How should X account for the $200000 difference between the fair value of the net assets acquired, $1000000 an dthe cost $800000
a. Retained earnings should be reduced by $200000
b. Current assets shoud be recorded at $685000 and noncurrent assets recorded at $515000
c. The noncurrent assets should be recorded at $400000
d. A deferred credit of $200000 should be set up and subsequently amortized to future net income over a period not to exceed 40 years