Dinh Co Acquired 60% of Ludo Ltd

Dinh Co. acquired 60% of Ludo Ltd. five years ago. In the current year, Dinh purchased additional shares from the NCI to bring its holdings to 75%. How should the difference between the purchase consideration paid and the adjustment to the value of the NCI be treated?

A) It should be taken directly to equity, split equally between the shareholders of the parent and the NCI.
B) It should be taken directly to equity, split proportionately between the shareholders of the parent and the NCI.
C) It should be taken directly to equity, all attributed to the shareholders of the parent.
D) It should be taken directly to equity, all attributed to the NCI.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Sign up to view answer