One Weakness Associated with the Fair Value Enterprise Method Is

Multiple Choice

One weakness associated with the fair value enterprise method is that:

A) it is inconsistent with the historical cost principle.
B) non-controlling interest (NCI) is computed using the fair market values of the subsidiary's net assets.
C) non-controlling interest (NCI) is computed using the book values of the subsidiary's net assets.
D) the implied value based on the parent's acquisition cost may be unrealistic when the parent purchases significantly less than 100% of the subsidiary's voting shares.