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3: Assume that P Company acquired all the net assets of S Company (current assets of $20,000, buildings for $400,000, and liabilities of $50,000 for

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3: Assume that P Company acquired all the net assets of S Company (current assets of $20,000, buildings for $400,000, and liabilities of $50,000 for cash of $510,000. P Company also agreed to pay an additional $150,000 to the former stockholders of S Company if the post combination revenues over the next two years equaled or exceeded $800,000. The fair value of the contingent consideration was estimated to be $60,000. : P Company will make the following entry on the date of acquisition

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