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Pamela acquired 80% of the share capital of Samantha on 1 January 20X1. Part of the
purchase consideration was $200,000 cash to be paid on 1 January 20X4 The applicable cost
of capital is 10%.
What will the deferred consideration liability be at 31 December 20X2?
the answer is given D but i can’t agree this answer
because there is period for 2 years
but the calculation is given just for a year
please clarify this issue
I agree with your answer unless I’m missing something daft. It would be D if the question was asking for 20X3 amount.