Any negative goodwill arising on the date of acquisition:

A) is prorated among the parent company's identifiable net assets.
B) is recognized as a gain on the date of acquisition.
C) should be amortized over a predetermined period.
D) is recognized as a gain on date of acquisition by both the parent and the non-controlling interest.

Negative Goodwill

A situation that occurs when the purchase price of a company is less than the fair value of its net assets, often recognized as a gain in the acquirer's profit and loss account.

Identifiable Net Assets

Assets of an acquired company that can be assigned a fair value and are capable of being separated or divided from the entity for recognition during an acquisition.