Chapter 23, EOC question 29 next, different, question, interest

segalm

Basically this question asks if the RETURN on EQUITY will be the same under:

-Equity method
-Consolidation w/ full goodwill
-Consolidation w/ partial goodwill
(note that some goodwill was purchased - this is amortized over the next 6 years)

Choices:
A) Same under consolidations, but different from Equity
B) All Same
C) None Same

ROE = NI / Equity

Obviously Equity is different under consolidation (include minority interest) and the equity method. They use this to claim the answer is A.
However, I think the answer should be C - because the goodwill will be different under full and partial methods - that means the amortization expense will be different - so NET INCOME will be different.

Anyone else come across this BS? Or am I just totally wrong.

They even mentioned how the amortization expense would be different in question #27 as well!!!