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17. People gamble more when they're happy, so a local casino has hired our taco stand to distribute free Tacos on Friday nights. For
17. People gamble more when they're happy, so a local casino has hired our taco stand to distribute free Tacos on Friday nights. For the first month, we will be paid $20,000 to provide this service, with a $4,000 bonus if it is determined that gambling will increase, and a 30% chance it will decrease. As these estimates are based on prior experiences, we have a strong confidence in our estimates. We use expected value in variable consideration contracts. What is the transaction price we will use for accounting purposes for this contract?
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