Measuring the Transaction Price For each of the separate revenue contract scenarios 1 through 5 measure the transaction price and to determine whether the transaction price is fed variable, or some combination of both 1. Loyola Inc sells 5120,000 of inventory during the year to customers for $240.000. Loyota Inc, accept returns up to 3 months after the date of purchase. Loyola estimates returns to be of sales Transaction price $ 225,600 Variable considerations 14400 W Fase consideration 2. Nakoma Corp. sells product offering a retroactive volume discount on certain cumulative sales volumes as follows to 500 units cost 310 each 501 to 1000 units cost 59 each 1001 unti and beyond cost 58 each For Nakomas largest customer, Nakoma estimates the likelihood of cumulative purchases for the year as follows: 15% for 400 units. So for 300 units, and 35 for 1.200 units. The revenue contract stipulates that the price per unit of product will be adjusted retroactively once specified sales volumes are met Cumulative sales to Nakomas Largest customer 480 units in the first quarter Transaction OX Variable consideration OX Foad consideration 3 0 3. Spectrum Inc is entering into a revenue contract with a new customer for $48.000. Spectrum agrees to pay an upfront fee of $6,000 to the new customer in order to obtain the new contracta a way to compensate the customer for additional up front processing costs. This payment is not associated with any distinct goods or services Transaction price 5 0 Variable considerations 0 Fixed consideration OM 4. Lakeside incentiers into a revenue contract with a customer to provide services. Under the contract, Lakeside will receive 3 124.000 bonus beyond the established fees of 172.500 if the Services are completed by the established date and within the required specifications. Based on Lakesides history of completing past contracts Lakeside estimates that the mostly amount the bonus is $24,000 Transaction on 5 3. Spectrum inicis entering into a revenue contract with a new customer for 540.000 Spectrum agrees to pay an up front fee of 56,000 to the new customer in order to obtain the new contract a way to compensate the customer for additional up front processing costs. This payment is not associated with any distinct goods or services Transaction price 0 Variable considerations Fixed consideration OM ao 4. Lakeside incenters into a revenue contract with a customer to provide services. Under the contract, Lakeside will receive a 524.000 bonus (beyond the established fees of 172.800 services are completed by the established date and within the required specifications. Based on Lakesides history of completing post contracts Loede estimates that the most likely amount of the bonus is 524,000 a Transaction price Variable consideration Fixed consideration s 5. Atlanta Incenters into a revenue contract with a customer to provide services Under the contract, Atlanta Inc will receive 240 shares of the customer's common stock 3 put alue per store At the contracts inception, the stock is trading on an exchange at 525 per share Transaction price D Variable consideration Rued consideration OX Check Marks for this is 0.072.00 GV ce N