Reimers Company acquires Rollins Corporation on January 1, 2020. As part of the agreement, the parent states

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Reimers Company acquires Rollins Corporation on January 1, 2020. As part of the agreement, the parent states that an additional $100,000 cash payment to the former owners of Rollins will be made in 2021, if Rollins achieves certain income thresholds during the first two years following the acquisition. How should Reimers account for this contingency in its 2020 consolidated financial statements?

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Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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