On June 1, 2018, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2018. Under the terms of the contract, Emmet will be paid a fixed fee of $50,000 per year and will receive an additional $7,500 at the end of each year (i.e. June 30th) provided that building occupancy exceeds 90% at that time. At the start of the contract Emmet estimates a 70% chance it will exceed the occupancy threshold. On June 30, 2019 occupancy is at 85%.

Assume that Emmet accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Emmet revises its estimate of the chance the building will exceed the 90% occupancy threshold to a 30% chance.

Required: What revenue amount should Emmet recognize in the month of November of 2018?

$1,667
		None of the above
		$4,167
		$1,438
		$4,792