Question: 27. Andrews enters into contract offering variable consideration. The contract pays him $1,700/month for six months of continuous legal services. In addition, there is 80%
27. Andrews enters into contract offering variable consideration. The contract pays him $1,700/month for six months of continuous legal services. In addition, there is 80% chance of contract will pay additional $4800 and 20% chance the contract will pay additional $1200, depending on the outcome of the legal services contract. Andrews concludes that this contract qualifies for revenue recognition over time. Assume Andrews estimates variable consideration as the most likely amount. What is the amount of revenue Andrews would recognize for the first month of the contract? A. $3840 B. $2040 C. $1700 D. $2500
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