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.

Question

Quizplus · Accepted Answer

Non-controlling interest has no involvement with the gain on bargain purchase. The gain is recognized entirely by the acquirer in its profit or loss because it benefits from acquiring assets at less than their fair value.

If a Gain on Bargain Purchase Arises on a Business