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If a Gain on Bargain Purchase Arises on a Business

Question 2

Multiple Choice

If a gain on bargain purchase arises on a business combination,the non-controlling interest:


A) is allocated 100% of the gain
B) has no involvement with the gain
C) is entitled to a proportionate share of the gain based on its level of share ownership
D) receives a proportionate share of the gain after adjustments for tax effects have been made.

Correct Answer:

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