HRN Enterprises Inc. purchases 80% of the outstanding voting shares of NHR Inc. on January 1, 2018. On that date, which of the following statements pertaining to non-controlling interest (NCI) is TRUE?
A) HRN's non-controlling interest (NCI) account will include 20% of the fair value of
NHR's net assets.
B) HRN's non-controlling interest (NCI) account will include 20% of the book value
of NHR's net assets.
C) HRN's non-controlling interest (NCI) account will include 20% of any unallocated
portion of the acquisition differential on the date of acquisition.
D) HRN's non-controlling interest (NCI) account will include 20% of the acquisition
differential on the date of acquisition.
A) HRN's non-controlling interest (NCI) account will include 20% of the fair value of
NHR's net assets.
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