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Contingent consideration is Multiple choice question. recognized only when payments are actually made upon achievement of performance objectives. a contractual provision to pay additional amounts to former owners of a business based upon achievements of future performance measures. not recorded as part of total consideration transferred in a business combination. immediately expensed at the acquisition date of the business combination.

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Contingent consideration is a contractual provision to pay additional amounts to former owners of a business based upon achievements of future performance measures. It is recognized only when payments are actually made upon achievement of performance objectives. It is recorded as part of total consideration transferred in a business combination.

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