The Calculation of Goodwill and Non-Controlling Interest Under the Entity

question 51

Multiple Choice

The calculation of Goodwill and Non-Controlling Interest under the Entity Theory is derived :

• A) by using an imputed acquisition cost, which would be the presumed cost of acquiring 100% of the outstanding voting shares of the subsidiary.
• B) by using the actual acquisition cost.
• C) by using the actual acquisition cost less any uncontrolled portion of the subsidiary's net assets at fair market value.
• D) by using the actual acquisition cost less any uncontrolled portion of the subsidiary's net assets at book value.

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Definitions:

Iconic Memory

A type of visual sensory memory that holds a brief visual representation of a scene that has been perceived, lasting only a fraction of a second.

Shallow Processing

Encoding on a basic level, based on the structure or appearance of words.

Encoding Failure

a situation in which information does not enter the long-term memory due to inadequate attention to or processing of the information.

Rehearsal

The act of practicing or repeating information or actions to enhance memory or performance.