When a contingent consideration arising from a business combination is classified as a liability, how is any difference between the original estimate of the amount to be paid and the actual amount paid accounted for if the difference arises due to a change in circumstances?
A) As an adjustment to consolidated contributed surplus.
B) As an adjustment to an estimate included in the determination of net income.
C) As a direct adjustment to consolidated retained earnings.
D) As an adjustment to the consideration paid for the subsidiary.
B) As an adjustment to an estimate included in the determination of net income.
C) As a direct adjustment to consolidated retained earnings.
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The justification for the accrual basis of accounting lies in the needs of financial statement users for periodic information on the financial position and the profitability of the entity
a. True b. False Indicate whether the statement is true or false
Targeting refers to the process of deciding which customers will get scarce products during product shortages
Indicate whether the statement is true or false
The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entries are posted, what will be the balance in the Retained earnings account? Total revenues$160,000?Total expenses 76,800?Retained earnings 102,400?Dividends 19,200?
A. $83,200. B. $166,400. C. $185,600. D. $102,400. E. $76,800.
Which type of investment, if any, could be classified as short- or long-term, as well as debt or equity?
a. Available-for-sale securities b. Trading securities c. Held-to-maturity securities d. None of the above