Which of the Following Statements Regarding the Partial Goodwill Method

question 33

Multiple Choice

Which of the following statements regarding the partial goodwill method is FALSE?

• A)The NCI is measured at the NCI's proportionate share of the fair value of the acquiree's identifiable net assets.
• B)The NCI does not get a share of any equity relating to goodwill.
• C)Goodwill consists of the consideration transferred plus previously acquired investment by parent plus parent's share of the net fair value of the identifiable net assets of the subsidiary.
• D)The only goodwill recognized is that acquired by the parent in the business combination.

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Definitions:

Tabula Rasa

A philosophical concept suggesting that individuals are born without built-in mental content, and all knowledge comes from experience and perception.

John Locke

a 17th-century English philosopher and political theorist known for his contributions to liberalism, social contract theory, and the concept of personal identity.

Thomas Hobbes

A 17th-century English philosopher known for his work on political philosophy, particularly his book "Leviathan," positing the foundation of societies and governments.

Natural State

A condition or situation perceived as inherent and untouched by human influence, often referring to environments or human behavior.