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Req $1$

Req $2$ and $3$

Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price.Thomas Consultants provided Bran Construction with assistance in implementing various cost$-$savings initiatives. Thomas$$s contract specifies that it will receive a flat fee of $$62,000$ and an additional $$32,000$ if Bran reaches a prespecified target amount of cost savings. Thomas estimates that there is a $20\%$ chance that Bran will achieve the cost$-$savings target.

Required:

$1.$ Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price.

$2.$ Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price.

$3.$ Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price.