Pesto Company Paid $10 Per Share to Acquire 80% of Sauce

Multiple Choice

Pesto Company paid $10 per share to acquire 80% of Sauce Company's 100,000 outstanding shares; however the market price of the remaining shares was $8.50.The fair value of Sauce's net assets at the time of the acquisition was $850,000.In this case, where Pesto paid a premium to achieve control:

A) ​The total value assigned to the NCI at the date of the acquisition may be less than the NCI percentage of the fair value of the net assets.
B) ​Goodwill is assigned 80% to Pesto and 20% to the NCI.
C) ​The NCI share of goodwill would be reduced to zero.
D) ​Pesto would recognize a gain on the acquisition.