If 100% of a Subsidiary's Voting Stock Is Acquired in the Purchase

Multiple Choice

If 100% of a subsidiary's voting stock is acquired in the purchase of the subsidiary, goodwill is defined as the amount by which the purchase price paid by the parent company exceeds the:

A) carrying amount of the net assets of the subsidiary
B) balance in the investment in subsidiary account
C) total shareholders' equity of the subsidiary
D) fair value of the net assets of the subsidiary