P Company acquired the net assets of S Company of fair value of $2,700,000 on January 1, 2011, paying $2,600,000 cash, P Company agreed to pay S Company's former stockholders $300,000 cash in 2012 if post- combination earnings of the combined company reached $1,000,000 during 2011. The acquisition entry will include: O Gain on acquisition of $200,000 Liability for Contingent Consideration of $200,000 O Goodwill of $200,000 O None of the answers

P Company acquired the net assets of S Company of fair value of $2,700,000 on January 1, 2011, paying $2,600,000 cash, P Company agreed to pay S Company's former stockholders $300,000 cash in 2012 if post- combination earnings of the combined company reached $1,000,000 during 2011. The acquisition entry will include: O Gain on acquisition of $200,000 Liability for Contingent Consideration of $200,000 O Goodwill of $200,000 O None of the answers

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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