If a Gain on Bargain Purchase Arises on a Business

question 12

Multiple Choice

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

• A)Is allocated 100% of the gain.
• B)Has no involvement with 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.

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Definitions:

Distinctiveness

The quality of being easily distinguishable from others due to unique attributes or characteristics.

Consistency

The quality of being uniform, stable, and free from contradiction over time.

Internal Causes

Factors within a person, such as their traits, emotions, or beliefs, that contribute to their behavior or actions.

Distinctiveness

The quality of being notably different or unique in comparison to others.