[rhb041000]

Hey guys,

First time poster, long time lurker.. I was working on a question regarding the acquisition method and was wondering if any of you guys could help out…

Now I know if $XXX is paid in cash… then the first entry to record the acquisition as the parent would be

Inv In Sub XXX

Cash XXX

But what if the purchase price is say 13 million… yet 6 million of it is in the form of seller financing. Would it be

Inv in Sub 13M

Cash 7M

Note Pay 6M

Or is the net cash out only recognized as total consideration? aka Inv in Sub 6M and cash 6M , thanks!!

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