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Q 10 Aztec Company contracted with the Kirk Company to review their revenue recognition policies for recording sales. The contract will pay Aztec $800,000 in

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Q 10 Aztec Company contracted with the Kirk Company to review their revenue recognition policies for recording sales. The contract will pay Aztec $800,000 in the form of a fixed fee. Aztec will also eceive $150,000 additionally if Kirk achieves $200,000 in additional revenues. Aztec estimates a 60% chance that Kirk will achieve $200,000 in additional revenues. Assuming Aztec estimates that the transaction price is the probability weighted amount of expect transaction price is Select one: O a. $890,000 O b. $800,000 O c. $950,000 O d. $975,000 Oe. None of the above

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