Business, 03.09.2019 17:30 phamleson8697

Dosmann, inc., bought all outstanding shares of lizzi corporation on january 1, 2013, for $700,000 in cash. this portion of the consideration transferred results in a fair-value allocation of $35,000 to equipment and goodwill of $88,000. at the acquisition date, dosmann also agrees to pay lizzi's previous owners an additional $110,000 on january 1, 2015, if lizzi earns a 10 percent return on the fair value of its assets in 2013 and 2014. lizzi's profits exceed this threshold in both years. which of the following is true? consolidated goodwill as of january 1, 2015, increases by $110,000.the $110,000 is recorded as an expense in 2015.the fair value of the expected contingent payment increases goodwill at the acquisition date. the additional $110,000 payment is a reduction in consolidated retained earnings

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Dosmann, inc., bought all outstanding shares of lizzi corporation on january 1, 2013, for $700,000 i...

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