When a Contingent Consideration Arising from a Business Combination Is

Multiple Choice

When a contingent consideration arising from a business combination is classified as equity, how is any change in its fair value accounted for if the difference arises due to a change in circumstances?

A) As an adjustment to the consideration paid for the subsidiary.
B) As an adjustment to an estimate included in the determination of net income.
C) As a memorandum entry indicating that additional shares had been issued.
D) As an adjustment to consolidated contributed surplus.