Omni$-$Resistor, Incorporated specializes in waterproofing homes, office buildings and other structures. Recently it completed a waterproofing renovation for a building at a local university. The contract specifies that Omni$-$Resistor will receive a flat lump sum of $$115,000$ for the renovation, and an additional $$4,000$ if there is no water leaking through the roof within the first year after the renovation. The seller estimates that there is an $85\%$ chance that no leakage will occur within the first year.

Required:

$($a$)$ Assuming Omni$-$Resistor uses the most likely value to estimate the variable consideration, calculate the transaction price.

$($b$)$ Assuming Omni$-$Resistor determines transaction price as the "expected value" of the variable consideration, calculate the transaction price.

$($c$)$ Assume Omni$-$Resistor uses the "expected value" approach, but is very uncertain of that estimate due to a lack of experience with similar renovations. Calculate the transaction price.

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Req B

Assuming Omni$-$Resistor determines transaction price as the "expected value" of the variable consideration, calculate the transaction price.

$\backslash$table$[[$Possible Amounts,,Probabilities,,,$],[42,x,\%,=,$$$,0],[.,x,\%,=,,0],[$Expected contract price at inception,$$,0]]$