To settle a difference of opinion regarding R$.$Obin$$s fair values, B$.$ Atman promises to pay an additional $$100,000$ to the former owners if R$.$ Obin$$s earnings exceed $$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 $0\mathrm{.}961538.$ Under the acquisition method, what is the contingent liability?

Multiple Choice

No contingent liability is recorded.

$$28,846$

$$30,000$

$$96,154$

$$100,000$