u Question 3 1 pts Ramon Corp. acquired 100% interest of Harold Corp on January 1, 20x1 for a consideration P3,500,000. The portion of the consideration transferred results in a fair value allocation of P175,000 to Inventory and Goodwill of P440,000. At the acquisition date also agreed to pay the former owners of Harold Corp. an additional P200,000 on January 1, 20x3. if Harold earns a 12% return on the fair value of its assets in 20x1 and 20x2. Harold's profits exceed the threshold in both years. Which of the following is correct? The fair value of the expected contingent consideration increases the goodwill at the acquisition date The additional P200,000 cash payment is recorded as expense in 20x3. The goodwill account will increase by P200,000 on January 1, 20x3 The additional P200,000 cash payment is a reduction in the retained earnings account