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An acquired companys former owners become employees of the acquiring company. At the date of acquisition, an acquiring company promises to make future payments to

An acquired companys former owners become employees of the acquiring company. At the date of acquisition, an acquiring company promises to make future payments to these former owners, which are terminated when the former owners are no longer employed. At the date of acquisition, the acquiring company: Does not report these contingent payments. In a brief paragraph, describe why such payments are not recognized at the date of acquisition.

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