Question
TrueTech enters into a contract with ProSport Gaming to add ProSport's online games to the Tri-Net network. ProSport offers popular games like Brawl of Bands,
TrueTech enters into a contract with ProSport Gaming to add ProSport's online games to the Tri-Net network. ProSport offers popular games like Brawl of Bands, and wants those games offered on the Tri-Net so ProSport can sell gems, weapons, health potions, and other game features that allow players to advance more quickly in a game. The terms of the contract are: On January 1, 2016, ProSport pays TrueTech an up-front fixed fee of $300,000 for six months of featured access. ProSport also will pay TrueTech a bonus of $180,000 if Tri-Net users access ProSport games for at least 15,000 hours during the six-month period. TrueTech estimates a 80% chance that it will achieve the usage target and receive the $180,000 bonus. Using the expected value method, recognize revenue at the end of February
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