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need help with step 3 of this problem!! prefer non paper Example: King Digital Entertainment, developer of Candy Crush Saga, enters into a contract with
need help with step 3 of this problem!! prefer non paper
Example: King Digital Entertainment, developer of Candy Crush Saga, enters into a contract with MiniClip on January 1 to add its newest game to the MiniClip network. If the game is on Miniclip's network, King will have the ability to sell additional game features directly to consumers. - King pays an upfront fee of $300,000 for 6 months of featured access - King will also pay Miniclip a bonus of $180,000 if Miniclip users access the King game for at least 15,000 hours during the 6-month period. MiniClip estimates a 75% chance that it will achieve the usage target and receive the $180,000 bonus. STEP 3 - DETERMINE THE TRANSAGTION PRICE [BONTINUED] STEP 3-DETERMINE THE TBANSAGTION PRICE [CONTINUED] Example: Let's assume Miniclip uses expected value to deterndine the transaction price. What entry should Miniclie make on January 31 at the end of the 1 1" month of the agreements STEP 3-DETERMINE THE TRANSAGTION PRICE [BOKTHOED] Exampie: Lets assume Minclip users accoss the game more than 1 hiryo hours and Mariclip receeves Step by Step Solution
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