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A business combination involves a contingent consideration. It is considered 80% probable that a payment...

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Accounting

A business combination involves a contingent consideration. It is considered 80% probable that a payment of $700,000 will become payable three years after the acquisition date. Using a 5% discount rate, what liability should be recorded for the contingent consideration on the acquisition date? (3 marks) Question 1 Select one: a. $604,686 b. $700,000 c. $483,749 d. $560,000

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