E8-3 (similar to) Kibosh Pest Control, Incorporated was recently hired to exterminate an office complex for $400,000 Kibosh will receive an additional $13,000 based on the success of the extermination. The additional $13,000 will be paid in full if the extermination is fully successful after one month That amount will be decreased to $4,000 if the extermination is successful after two months and $1,000 if successful after three months Based on past experience with similar contracts, Kibosh estimates that there is a 40% probability that the process will be successful with the one month period, a 55% probability that it will take two months to be successful and a(n) 5% probability that the process will be effective after three months Read the requirements Requirement a. Determine the transaction price for this contract using the expected value approach i Requirements The transaction price for this contract using the expected value approach is s a. Determine the transaction price for this contract using the expected value aproach b. Determine the transaction price for this contract using the most likely amount approach Kicker Party Company contracts with a customer to provide its birthday party package including a cake, balloons, and musical entertainment. It regularly sells the following products separate at the following standalone seling prices PS: (Click the icon for the standalone selling prices) Click the icon to view additional information) * More Info Requirement How should Kicker Party allocate the transaction price to each product? Kicker Party also regularly bundles musical entertainment and hosting together for How is each product allocated? $170 Kicker Party signs a contract with a customer to provide balloons, a cake, musical entertainment and hosting a party for $316. Kicker Party determines that Balloons each product is a separate performance obligation Cake Musical Entertainment X Data Table Hosting Standalone Selling Price Item S 85 Balloons Cake Musical Entertainment 61 128 Hosting 112