Acquisition Accounting Treatment for Company A's Acquisition

Company A acquires Company B for a cash purchase price of $500 million. At the acquisition date, Company B has net identifiable assets valued at $400 million and there is goodwill attributed to the acquisition amounting to $100 million. After the acquisition, Company A is required to test for impairment of goodwill annually. Which of the following correctly describes the acquisition accounting treatment for the acquisition of Company B?