Contingent consideration is an agreement generally accompanying a business combination, under this, the target firm asks for consideration based on forecasts of its future performance. This consideration would be payable if the future forecast is met. The accounting of contingency as part of the agreement of additional payment of $100,000, if R achieves a certain income threshold.

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 3, Problem 10Q

To determine

Introduction: Contingent consideration is an agreement generally accompanying a business combination, under this, the target firm asks for consideration based on forecasts of its future performance. This consideration would be payable if the future forecast is met.

The accounting of contingency as part of the agreement of additional payment of $100,000, if R achieves a certain income threshold.

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A copy machine cost $78,000 when new and has accumulated depreciation of $72,000. Suppose Print and Photo Center sold the machine for $6,000. What is the result of this disposal transaction?

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Answer 2

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 3, Problem 10Q

To determine

Introduction: Contingent consideration is an agreement generally accompanying a business combination, under this, the target firm asks for consideration based on forecasts of its future performance. This consideration would be payable if the future forecast is met.

The accounting of contingency as part of the agreement of additional payment of $100,000, if R achieves a certain income threshold.

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Answer 3

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 3, Problem 10Q

To determine

Introduction: Contingent consideration is an agreement generally accompanying a business combination, under this, the target firm asks for consideration based on forecasts of its future performance. This consideration would be payable if the future forecast is met.

The accounting of contingency as part of the agreement of additional payment of $100,000, if R achieves a certain income threshold.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 3, Problem 10Q

To determine