Question: Reimers Company acquires Rollins Corporation on January 1 2014 As
Reimers Company acquires Rollins Corporation on January 1, 2014. As part of the agreement, the parent states that an additional $100,000 payment to the former owners of Rollins will be made in 2016, if Rollins achieves certain income thresholds during the first two years following the acquisition. How should Reimers account for this contingency in its 2014 consolidated financial statements?
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