16. Which of the following statement is most true? a. Variable consideration means that the transaction price is uncertain. h. Basing an estimate on the most likely amount is always superior to basing an estimate on the expected value. e. The most likely estimated amount is estimated by multiplying the possible amounts with their respective probability of occurrence. d. When the transaction price is uncertain, revenue should not be recognized 17. Which of the following is an example of a variable consideration? a. John is expected to receive $100 for his tutoring services provided that he keeps track of his hours. b. Melody's Piano will get paid for the 50 pianos sold provided that the pianos are non-defective after the customer takes control. c. Cantankerous Computers gets paid a base amount for every repair plus an additional hourly fee of $10. d. Excellent Electronics has a 10% mail -in rebate program for the Model X-001 speaker system. The company sold $10,000 worth of systems and believes there is a 50% chance that rebates will be redeemed. 18. Which of the following is correct about changes in estimated variable consideration? a. Changes in estimated variable consideration should be recognized as an adjustment to revenue in the period the change in estimate is made. b. Changes in estimated variable consideration should be applied retroactively to all periods affected. Changes in estimated variable consideration should be allocated retrospectively to all prior periods. d. Changes in estimated variable consideration are not recognized in periods after transaction price is first estimated. C. Use the following to answer questions 19 and 20: On April 1t, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $5,000 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 30% of the base fee if the project finished 2 weeks early and the probability of finishing two weeks early is 60%. 19. What is the transaction price with variable consideration estimated as the expected value? a. $4,750 b. $5,000 c. $6,500 d. $5,900