Pesto Company paid $8 per share to acquire 80% of Sauce Company's 100,000 outstanding shares. The fair value of Sauce's net assets at the time of the acquisition was $850,000 . In this case:
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 will be recognized by Pesto.
c. Pesto and the NCI would both recognize a gain on the acquisition.
d. Pesto only would recognize a gain on the acquisition.
d
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