Business, 05.08.2019 21:30 makrosebud7821

Acompany acquires another company for $3,000,000 in cash, $10,000,000 in stock, and the following contingent consideration: $1,000,000 after year 1, $1,000,000 after year 2, and $500,000 after year 3, if earnings of the subsidiary exceed $10,000,000 in each of the three years. the fair value of the contingent -based consideration portion is $2,100,000. what is the total consideration transferred for this business combination?

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Answer from: Taylor129

the correct answer is $15,100,000

Explanation:

Business combinations must be accounted for using the acquisition method. According to this method, the consideration transferred is measured at its acquisition date fair value. Contingent consideration is an obligation of the acquirer to transfer additional assets or equity securities to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. On the business combination date, contingent consideration must be recognized at its acquisition-date fair value of $2,100,000 and be included in the total fair value of the consideration transferred and in the calculation of goodwill.

Thus, the total acquisition date fair value of the consideration transferred is $15,100,000 = $3,000,000 cash + $10,000,000 fair value of stock + $2,100,000 fair value contingent consideration..

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

Answer from: Quest

Answerexit champion;

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Acompany acquires another company for $3,000,000 in cash, $10,000,000 in stock, and the following co...

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