Under the Acquisition Method of Accounting for a Business Combination

Multiple Choice

Under the acquisition method of accounting for a business combination when the parent company has acquired only 90% of the voting stock of a subsidiary,

A) 10% of the goodwill will be reported in a separate section of the balance sheet because it belongs to the noncontrolling interest.
B) The consolidated balance sheet will report 100% of the value of goodwill.
C) The consolidated balance sheet will report 90% of the value of goodwill.
D) Goodwill will be amortized over its useful life or 40 years whichever comes first.