Which one of the following items increases the amount of goodwill recognized in an acquisition?
A) Consulting fees paid to Goldman Sachs
B) Payments offered to employees of the acquired company that are based on their future performance
C) An earnout added to an acquisition agreement to motivate the acquired company's shareholders to sell
D) Registration fees the acquiring company pays to issue new stock in an acquisition
Correct Answer:
Verified
Q26: Prescott acquires all of the stock
Q27: The expected present value of contingent payments
Q28: An acquirer includes an earnout, or earnings
Q29: ABC Corporation acquires the assets and liabilities
Q30: Parish Corporation issues new stock with $1/share
Q32: All of the following increase the acquisition
Q33: ABC Corporation acquires the assets and liabilities
Q34: Which item affects the reported net income
Q35: An acquired company's former owners become employees
Q36: An acquiring company pays $45 million in
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