Under the Proprietary Theory, Non-Controlling Interest (NCI) Is

question 47

Multiple Choice

Under the Proprietary Theory, non-controlling interest (NCI) is:

• A) nonexistent. Goodwill is established based on the Parent's pro-rata share of any acquisition differential.
• B) nonexistent. Goodwill is established based on the Parent's acquisition cost.
• C) based on the fair market values of the subsidiary's net assets. Goodwill is established based on the Parent's acquisition cost.
• D)based on the book values of the subsidiary's net assets. Goodwill is established based on the Parent's acquisition cost.

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Definitions:

Humility

The quality of having a modest or low view of one's importance, often allowing for more open-mindedness and growth.

Practicality

The aspect of being sensible, realistic, and focused on what is achievable or effective in real-life situations.

Critical Thinkers

Individuals who actively engage in analysis, evaluation, and synthesis of information to solve problems and make informed decisions.

Questioning

The process of expressing doubt or seeking information about something.