Camille, Inc., bought all outstanding shares of Jordan Corporation on January 1, 2019, for $792,000 in cash. This portion of the consideration transferred results in a fair- value allocation of...

Extracted text: Camille, Inc., bought all outstanding shares of Jordan Corporation on January 1, 2019, for $792,000 in cash. This portion of the consideration transferred results in a fair- value allocation of $41,700 to equipment and goodwill of $108,300. At the acquisition date, Camille also agrees to pay Jordan's previous owners an additional $159,000 on January 1, 2021, if Jordan earns a 10 percent return on the fair value of its assets in 2019 and 2020. Jordan's profits exceed this threshold in both years. Which of the following is true? The additional $159,000 payment is reported as an adjustment to the beginning balance of consolidated retained earnings. Consolidated goodwill as of January 1, 2021, increases by $159,000. The $159,000 is recorded as a revaluation gain in 2021. The fair value of the expected contingent payment increases goodwill at the acquisition date.