Kiara Ltd Acquired 90% of Udder Ltd

Multiple Choice

Kiara Ltd. acquired 90% of Udder Ltd. for $200,000 less than the fair value. How should this $200,000 be treated on Kiara's consolidated financial statements?

A) As goodwill on the consolidated statement of financial position.
B) As a gain on the consolidated statement of comprehensive income.
C) Allocated as fair value increments over Udder's net identifiable assets.
D) As a separate item under shareholders' equity.