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May 6, 2024
Question

I am being purchased, we have agreed to an earn out. How do I record the earn out in my books? What kind of account is it? where does it go on the balance sheet?

  • May 6, 2024
  • 1 reply
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1 reply

Rainflurry
May 7, 2024

@lcuddemi-idigita 

 

You need to contact a CPA that understands earn-outs.  There are different accounting treatments based on your specific earn-out arrangement.