Dinh Co Acquired 60% of Ludo Ltd

question 5

Multiple Choice

Dinh Co. acquired 60% of Ludo Ltd. five years ago. In the current year, Dinh purchased additional shares from the NCI to bring its holdings to 75%. How should the difference between the purchase consideration paid and the adjustment to the value of the NCI be treated?

• A)It should be taken directly to equity, split equally between the shareholders of the parent and the NCI.
• B)It should be taken directly to equity, split proportionately between the shareholders of the parent and the NCI.
• C)It should be taken directly to equity, all attributed to the shareholders of the parent.
• D)It should be taken directly to equity, all attributed to the NCI.