the founders of an acquired company are granted a contingent payment for three y

Question

the founders of an acquired company are granted a contingent payment for three years after the acquisition based on those years earnings:

a. the acquirer typically recognizes the payment as goodwill when the ccontingency is resolved and payment is given.
b. the acquirer typically recognizes the payment as goodwill when the contingency is resolved.
c. the acquirer typicallY includes the expected payments based on future earnings as goodwill at acquisition.
d. the acquirer typically amortizes contingencies over the applicable award period.

Explanation / Answer

the founders of an acquired company are granted a contingent payment for three years after the acquisition based on those years earnings: a. the acquirer typically recognizes the payment as goodwill when the ccontingency is resolved and payment is given.

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