Question
Which of the following would be a likely result from a parent paying a Control Premium to acquire a controlling interest in a subsidiary? answer
Which of the following would be a likely result from a parent paying a "Control Premium" to acquire a controlling interest in a subsidiary?
answer choices:
A. The parent would record the amount of the Control Premium as a loss on the acquistion
B. The Control Premium should be recorded as an asset on the Consolidated Balance sheet if it can be separated from the entity and sold to a third party.
C. Goodwill attributable to the Controlling interest would be higher than that attributed to the Noncontrolling Interest
D. The Noncontrolling Interest would not be adjusted to fair value at the date of acquisition
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