If a gain on bargain purchase arises on a business combination, the NCI:
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

The gain on a bargain purchase in a business combination is recognized in full by the acquirer in its profit or loss. The non-controlling interest (NCI) has no involvement with the gain, as it is not allocated to them but rather to the acquirer.

If a Gain on Bargain Purchase Arises on a Business