Homewotkmtmhesoatchjlmuladnos 1] On January 1. Year 1. Shag Co. acquired most. of the outstanding common stock of D'Neal Co. As part of the total consideration transferred. Shag promised to the shareholders of D'Neal to issue on May 1. Year 2. additional LUCIE shares of common stock if the total consolidated net income for Year 1 is greater than $1Billion. The consolidated net income in Year 1 was $1.2 Billion. The controller of Shag Co. tool: the ABBY 41D class at the UIUC and remembers that this contingent consideration must be classified as equity .e.. APIC] in the consolidated nancial statements. However. the controller did not always come prepared to the class and does not remember whether this contingent consideration should he remeasured on 133Wear 1 or not. Research and cite a specic paragraph in the Accounting Standard Codification that can help the controller to determine whether this contingent consideration should be remeasured at the year-end. or not. Unless specifically requested. your response should not cite implementation guidance and illustrations. Passes: :l-l:|--C|:|