What are the accounting ramifications of each of the two following situations involving the payment of contingent consideration in a purchase?

a. P Company issued 100,000 shares of its $50 fair value common stock as payment to buy S Company on January 1, 20X1. P agreed to issue 10,000 additional shares of its stock two years later if S income exceeded an income target. The target was exceeded.

b. P Company issued 100,000 shares of its $50 fair value common stock as payment to buy S Company on January 1, 20X1. P agreed to issue additional shares two years later if the fair value of P shares fell below $50 per share. Two years later, the stock had a value far below $50, and added shares were issued to S.

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