Company A pays $4,000,000 in cash to acquire Company B on January 1, 2019. Company A also
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Question:
Company A pays $4,000,000 in cash to acquire Company B on January 1, 2019. Company A also pays $1,000,000 for outside merger advisory services and has an earnout agreement with an expected present value of $2,000,000 as part of the acquisition. What is the total acquisition cost associated with this combination?
Select one:
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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