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5. (10 points) Twiggy enters into a contract with Tyra Video to add their programs to Twiggy's network. Tyra will pay Twiggy an upfront

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5. (10 points) Twiggy enters into a contract with Tyra Video to add their programs to Twiggy's network. Tyra will pay Twiggy an upfront fee of $250,000 for 12 months of access and will also pay a $100,000 bonus if Twiggy's users access Tyra Video for at least 10,000 hours during the 12-month period. Twiggy estimates that it has a 55% chance of earning the $100,000 bonus. a. Refer to Twiggy Corporation. Using the expected-value approach, determine the transaction price. 20 16M b. Refer to Twiggy Corporation. Using the most-likely-amount approach, determine the transaction price. 1200 250 pint -0- 000,0812 000,218 002,2012 002 sasz 000.804 0003 to date 750,000 000,20 000 0252 000 ORE Dubois 1-moos S-moo 8-moo

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