Which of the following is false regarding contingent consideration in business combinations?

Multiple Choice

Contingent consideration is reflected in the acquirer's balance sheet at the present value of the

potential expected future payment.

The contingent consideration fair value is recognized as part of the acquisition regardless of

whether eventual payment is based on future performance of the target firm or future siock price

of the acquirer.

Contingent consideration payable in cash is reported under liabilities.

Contingent consideration payable in stock shares is reported under stockholders' equity.

Contingent consideration is recorded because of its substantial probability of eventual payment.