ABC Corporation Acquires the Assets and Liabilities of XYZ Company

ABC Corporation acquires the assets and liabilities of XYZ Company in a merger. If ABC offers the former shareholders of XYZ an earnings contingency, what is the likely result of having this contingency, on ABC's balance sheet at the date of acquisition?

A) ABC will report less goodwill.
B) ABC will revalue XYZ's previously reported assets at higher amounts.
C) ABC will revalue XYZ's previously reported liabilities at higher amounts.
D) ABC will report a liability for the earnings contingency.