Mega Corporation Acquired 65% of the Voting Shares of Forko

question 17

Multiple Choice

Mega Corporation acquired 65% of the voting shares of Forko Ltd for €10 billion and used the purchase method of accounting for the merger.Mega Corporation's interest in Forko Ltd.had a restated value of €950 million.How should the difference be accounted for by Mega Corporation?

• A)As Gain from Acquisition on the current period income statement
• B)As Goodwill on the consolidated balance sheet
• C)As a Loss from Merger on the current period income statement
• D)As Additional Paid-in Capital on the consolidated balance sheet

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