Aztec Company contracted with the Kirk Company to review their revenue recognition policies for recording sales. The contract will pay Aztec $600,000 in the form of a fixed fee. Aztec will also receive $150,000 additionally if Kirk achieves $200,000 in additional revenues. Aztec estimates a 60% chance that K k Company will achieve $200,000 in additional revenues Refer to Aztec Company. Assume Aztec estimates that the transaction price is the most likely value. The transaction price is____________________. 

A. S390.000

B. $750,000 

C. $697,500 

D. S600,000

Answer rating: 100% (QA)

Solution B 750000 is correct A... View the full answer