If a Gain on Bargain Purchase Arises on a Business

question 31

Multiple Choice

If a gain on bargain purchase arises on a business combination, the non-controlling interest:

• A) receives no share of the gain.
• B) is allocated 100% of 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.

---

Definitions:

New Ventures

Initiatives or businesses started to explore new markets or create new products.

Walmart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, known for its wide range of products and low prices.

Rights Approach

A method or ethical perspective emphasizing the importance of individual rights in decision-making processes.

Ethical Decision-making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles and values.