Question: TC Corp. appointed a candidate as its new CEO under a 10-year contract. The contract required TC to pay the candidate $5 million if TC

TC Corp. appointed a candidate as its new CEO under a 10-year contract. The contract required TC to pay the candidate $5 million if TC is acquired before the contract expires. AC Ltd. acquires TC eight years later. The CEO was still employed at the acquisition date and will receive the additional payment under the existing contract.
Required
Indicate how TC would account for this payment.

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