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How should Angie Corporation recognize this transaction

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Question - On January 1, year 1, Angie Corporation issued 500,000 shares of its stock valued at $5 per share to acquire Nellie Corporation. The purchase agreement states that Angie Corporation will pay $300,000 in year 2 if Nellie Corporation has at least $450,000 of net income in year 2. There is a 50% chance that Nellie Corporation will meet or exceed $450,000 of net income in year 2. How should Angie Corporation recognize this transaction?

Gather data from multiple sources and present that data in one to two pages. Be sure to document your sources.

Reference no: EM132671840

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