If a gain on bargain purchase arises on a business combination,the non-controlling interest:
A)is allocated 100% of the gain
B)has no involvement with the gain
C)is entitled to a proportionate share of the gain based on its level of share ownership
D)receives a proportionate share of the gain after adjustments for tax effects have been made.

Question

Quizplus · Accepted Answer

In a business combination, a gain on bargain purchase is recognized by the acquirer and not allocated to the non-controlling interest. The gain arises when the fair value of net assets acquired exceeds the purchase consideration, and it is recognized in the acquirer's financial statements.

If a Gain on Bargain Purchase Arises on a Business