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Is this correct? Il. On 1/1/15 Big Co. acquired Little Co. in a business combination to be accounted for as a merger. Big paid $400,000

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Il. On 1/1/15 Big Co. acquired Little Co. in a business combination to be accounted for as a merger. Big paid $400,000 in cash plus a contingent consideration agreement. The contingent consideration agreement provided that additional cash payments would be made to the sellers based upon 3 year cumulative earnings growth, as set out in the following table: Likelihood of attaining that target 10% 35% 30% 25% 3 year cumulative Additional payment earnings growth

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