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On 1/1/2017 P Company acquired all the net assets of S Company. P Company also agreed to pay an additional $90000 to the former stockholders
On 1/1/2017 P Company acquired all the net assets of S Company. P Company also agreed to pay an additional $90000 to the former stockholders of S Company if the average earnings next two years exceeded $800000. The entry recorded if target is met: Select one: O a. Dr. Cash 90000 Cr. Income 90000 O b. Dr. Contingent liability 90000 Cr. Income 90000 O c. Dr. Goodwill 90000 Cr. Contingent liability 90000 O d. Dr. Contingent liability 90000 Cr. Cash 90000
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