Question: To settle a difference of opinion regarding R . Obin s fair values, B . Atman promises to pay an additional $ 1 0 0

To settle a difference of opinion regarding R.Obins fair values, B. Atman promises to pay an additional $100,000 to the former owners if R. Obins earnings exceed $500,000 during the next annual period. B. Atman estimates a 30% probability that the $100,000 contingent payment will be required. Assuming a discount rate of 4%, the present value factor is 0.961538. Under the acquisition method, what is the contingent liability?

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