An Acquired Company's Former Owners Become Employees of the Acquiring

An acquired company's former owners become employees of the acquiring company. At the date of acquisition, an acquiring company promises to make future payments to these former owners, which are terminated when the former owners are no longer employed. At the date of acquisition, the acquiring company:

A) Does not report these contingent payments
B) Reports the contingent payments as a liability, at expected present value
C) Reports the contingent payments as a liability, by summing up the expected future payments
D) Reports the contingent payments as a credit to equity