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On January 1, 2021, Montana Corp. entered into a contract to provide services for B Industries. The base fee for the services is $300,000 total
On January 1, 2021, Montana Corp. entered into a contract to provide services for B Industries. The base fee for the services is $300,000 total over 3 years. Montana can also earn a bonus of $75,000 if B Industries reports a service satisfaction level above 90%. Montana's accountants and management are trying to determine the likelihood of getting the bonus and the service manager concludes: "If you forced me to make an estimate, I'd say we have a 50/50 chance. But don't quote me on that - it's really too early to tell, Montana intends to recognize revenue over time, and estimates variable consideration using the most likely amount. How much revenue should Montana recognize as of December 31, 2021? $300,000 O $100.000 $75.000 $125,000
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