Sellet Billboard Company entered into an agreement to display billboard advertising for Highlife Incorporated for 10 months

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Sellet Billboard Company entered into an agreement to display billboard advertising for Highlife Incorporated for 10 months for a $ 60,000 fixed fee. The agreement also includes a potential $ 6,000 bonus based on certain goals. Sellet estimates it is 70% likely to receive the entire bonus and 30% likely to receive none of the bonus. What approach should Sellet use to estimate variable consideration? What is the estimate of the consideration amount in this contract?
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Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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