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.

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Definitions:

Humanist Theory

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual, often associated with concepts of free will and self-actualization.

Genetic Theory

A theory that explains traits, behaviors, and conditions primarily through the influence of genetic information and heredity.

Cognitive Theory

A psychological approach that emphasizes the role of mental processes in understanding behavior, emotions, and thought patterns.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, controlling the impulses of the id based on societal norms.