Question
please help solve this, I will also like to know how to solve it next time please workings Sanjeev enters into a contract offering variable
please help solve this, I will also like to know how to solve it next time please workings
Sanjeev enters into a contract offering variable consideration. The contract pays him $2,700/month for six months of continuous consulting services. In addition, there is a 70% chance the contract will pay an additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending on the outcome of the consulting contract. Sanjeev concludes that this contract qualifies for revenue recognition over time. Assume Sanjeev estimates variable consideration as the most likely amount. What is the amount of revenue Sanjeev would recognize for the first month of the contract?
Multiple Choice
-
$2,450
-
$2,700
-
$3,283
-
$3,510
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started