Assuming Rhine Generates Cash Flow from Operations of $27,200 in 2017

question 98

Multiple Choice

Assuming Rhine generates cash flow from operations of $27,200 in 2017, how will Harrison record the $16,500 payment of cash on April 15, 2018 in satisfaction of its contingent obligation?

• A) Debit Contingent performance obligation $16,500, and Credit Cash $16,500.
• B) Debit Contingent performance obligation $3,142, debit Loss from revaluation of contingent performance obligation $13,358, and Credit Cash $16,500.
• C) Debit Investment in Subsidiary and Credit Cash, $16,500.
• D) Debit Goodwill and Credit Cash, $16,500.
• E) No entry.

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Definitions:

Outcomes

The results or effects of an action, situation, or event; the endpoint of a process or activity.

Hallucinations

Sensory experiences that appear real but are created by the mind, without any external stimulus.

Voices Inside

Refers to the experience of hearing internal voices or thoughts, which can be a normal aspect of introspection or a symptom of certain psychological conditions.

Multiple Voices

The presence of various distinct perspectives or narrative styles within a single text, conversation, or cognitive process.