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When a contingent consideration arising from a business combination is classified as equity, how is...

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Accounting

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When a contingent consideration arising from a business combination is classified as equity, how is any change in its fair value accounted for if the difference arises due to a change in circumstances? Select one: O A. As an adjustment to an estimate included in the determination of net income. OB. As a memorandum entry indicating that additional shares had been issued. OC. As an adjustment to consolidated contributed surplus. O D. As an adjustment to the consideration paid for the subsidiary, If an investment accounted for using the equity method suffers an impairment loss and the value in use of the investment subsequently recovers, what accounting entry should be made? Select one: O A It may be revalued to fair value with the revaluation gain going to net income, even if the recorded gain will exceed the original impairment loss. OB. It may be written up in value but not more than the amount of the impairment loss that was recorded at the time of impairment. OC. It may be revalued to fair value with the revaluation gain going to other comprehensive income, even if the recorded gain will exceed the original impairment loss. OD. None; once an investment has been written down, it cannot subsequently be written up

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