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Revenue Recognition Mohan Consultants provided Fisher Construction with assistance with implementing various cost-savings initiatives. Mohan's contract specifies that it will receive a flat rate of
Revenue Recognition Mohan Consultants provided Fisher Construction with assistance with implementing various cost-savings initiatives. Mohan's contract specifies that it will receive a flat rate of $30,000 and an additional $10,000 if Fisher reaches a pre-specified target amount of cost savings. Mohan estimates that there is a 35% chance that Fisher will achieve the cost savings target. Required: Assuming Mohan uses an expected value to calculate transaction price, calculate the amount of the transaction price. Assuming Mohan uses the most likely value as the transaction price, calculate the amount of the transaction price. Assume Mohan uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price
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