REFERENCE: Ref.03_10 Beatty,Inc.acquires 100% of the Voting Stock of Gataux Company on Company

REFERENCE: Ref.03_10
Beatty,Inc.acquires 100% of the voting stock of Gataux Company on January 1,2009 for $500,000 cash.A contingent payment of $12,000 will be paid on April 1,2010 if Gataux generates cash flows from operations of $26,500 or more in the next year.Harrison estimates that there is a 30% probability that Rhine will generate at least $26,500 next year,and uses an interest rate of 4% to incorporate the time value of money.The fair value of $12,000 at 4%,using a probability weighted approach,is $3,461.
-Assuming Gataux generates cash flow from operations of $27,200 in 2009,how will Beatty record the $12,000 payment of cash on April 1,2010 according to SFAS 141(R) ?

A) Debit Contingent performance obligation $3,461,debit Goodwill $8,539,and Credit Cash $12,000.
B) Debit Contingent performance obligation $3,461,debit Loss from contingent performance obligation $8,539,and Credit Cash $12,000.
C) Debit Goodwill and Credit Cash,$12,000.
D) Debit Goodwill $27,200,credit Contingent performance obligation $15,200,and Credit Cash $12,000.
E) No entry.