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When a Subsidiary Has a 20% Noncontrolling Interest, and the Acquisition

Question 62

Multiple Choice

When a subsidiary has a 20% noncontrolling interest, and the acquisition is a bargain purchase, the gain on acquisition is:


A) The fair value of identifiable net assets acquired less acquisition cost
B) The fair value of identifiable net assets acquired less acquisition cost less fair value of noncontrolling interest
C) 80% of the fair value of identifiable net assets less acquisition cost
D) 80% of the fair value of identifiable net assets less acquisition cost less fair value of noncontrolling interest

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