2.99 See Answer

Question: Reimers Company acquires Rollins Corporation on


Reimers Company acquires Rollins Corporation on January 1, 2020. As part of the agreement, the parent states that an additional $100,000 cash payment to the former owners of Rollins will be made in 2021, if Rollins achieves certain income thresholds during the first two years following the acquisition. How should Reimers account for this contingency in its 2020 consolidated financial statements?

2.99

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