Problem 3-9 (LO 3-7) shares of Lizzi Corporation on January 1,2016, for $702,000 in cash. This portion of the consideration transferred results in a fair value allocation of $52,500 to equipment and goodwill of $88,500. At the acquisition date, Dosmann also agrees to pay Lizz's previous owners an additional $203,000 on January 1,2018, if Lizzi earns a 10 percent return on the fair value of its assets 2016 and 2017 Lizzi's profits exceed this threshold in both years Which of the following is true? 3 The $203.000 is recorded as en expense in 2018 t the ecouston date Pre 9f Nex>