Question: A business combination Involves a contingent consideration. It is considered 70% probable that a payment of $500,000 will become payable three years after the acquisition

A business combination Involves a contingent consideration. It is considered 70% probable that a payment of $500,000 will become payable three years after the acquisition date. Using a 7% discount rate, how much Interest expense should be recorded on the liability for the first year after acquisition?

Multiple Choice

$24.500

$35,000

$28,570

$19,999

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