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

Multiple Choice

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 stock price of the acquirer.

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

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

Contingent consideration is reflected in the acquirer's balance sheet at the present value of the potential expected future payment.

Contingent consideration payable in cash is reported under liabilities.

Private companies, with respect to goodwill:

Multiple Choice

Must treat it as an intangible asset with an indefinite life.

Must amortize it over a $12-$year period.

May elect to amortize it over a period of $15$ years.

May treat goodwill as a definite lived intangible asset with a $10-$year useful life.

May amortize goodwill if the value of the company does not exceed $$10$ million.