Patterson Corporation Acquired Slees Company, with the Entire Consideration in the Form

Patterson Corporation acquired Slees Company, with the entire consideration in the form of an earnout. Patterson Corporation agreed to pay the former owners of Slees Company three times total operating income earned over the next three years. The payment, if any, would be made at the end of three years. Patterson originally reported the earnout at $350 million.
Required a. Assume Patterson used a discount rate of 20% to record the earnout at the date of acquisition. What did Patterson expect total operating income over the next three years to be? Round your answer to the nearest million.
b. What factors determined the discount rate used in Part a.?
c. Patterson estimated the fair value of Slees' identifiable net assets to be $150 million at the date of acquisition. How did the existence of the earnout affect the entry Patterson made to record the acquisition?
d. During the first year, the value of the earnout increased to $375 million due to the passage of time. How did Patterson record this increase in value?