Which of the Following Statements Relating to a Gain on Bargain

question 37

Multiple Choice

Which of the following statements relating to a gain on bargain purchase is FALSE?

• A)Such gains are common.
• B)Such gains have no effect on the calculation of the NCI share of equity.
• C)Whereas the goodwill of the subsidiary may be determined by calculating the goodwill acquired by the parent entity and then adding the fair value of the NCI to determine the goodwill for the subsidiary, this process is not applicable for a gain on bargain purchase.
• D)The gain is made by the parent paying less than the net fair value of the acquirer's share of the identifiable assets, liabilities and contingent liabilities of the subsidiary.

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Definitions:

Spinal Cord

An elongated part of the central nervous system encased within the spine that transmits nerve signals between the brain and the rest of the body.

Medulla

The medulla is a part of the brainstem responsible for controlling vital bodily functions, such as breathing, heart rate, and blood pressure.

Limbic System

A complex system of nerves and networks in the brain, associated with basic emotions and drives.

Hypothalamus

A region of the brain that regulates vital functions such as temperature, thirst, hunger, sleep, and emotions.