Question: 0530 Check my Brief Exercise 5-15 Variable consideration [LO5-6) in January 2018, Continental Fund Services, Inc, enters into a one year contract with a client

 0530 Check my Brief Exercise 5-15 Variable consideration [LO5-6) in January

0530 Check my Brief Exercise 5-15 Variable consideration [LO5-6) in January 2018, Continental Fund Services, Inc, enters into a one year contract with a client to provide investment advisory services The company wa receive a managemert tee, prepid at the begning of the contract, that is calculated as 1 5% of the dent's $30 mhon total assets being managed In addition, the contract spectes that Coritnmtal win receive a performance bonus of 15% of any retums in excess of the return on the Dow Jones Industrial Average market ndex Condinental estimates that it will earn a $2 millon eio performance bonus, but is very uncertain of that estimate, given that the bonus depends on a highly volatile stock market On what transaction price should Continental base revenue recognition(Enter your answer in ie,5,500,000 should be entered as 5.50p

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!