Frey Ltd Acquired 70% of Sabo Ltd

Multiple Choice

Frey Ltd. acquired 70% of Sabo Ltd. in 20X4. On January 1, 20X8, Frey acquired another 10% of Sabo's common shares for $250,000.
- With respect to this addition purchase, which of the following is true?

A) On the consolidated statement of financial position, the goodwill balance will increase.
B) On the consolidated statement of financial position, the common shares balance will increase.
C) Frey must use the equity method to report the additional investment.
D) Frey should ignore any changes in the fair values of Sabo's net assets between January 1, 20X4, and January 1, 20X8.