Question: I need answer for both please Sanieev enters into a contract offering variable consideration, The contract pays him $1.000/ month for six months of continuous
Sanieev enters into a contract offering variable consideration, The contract pays him $1.000/ month for six months of continuous consulting services. In addition, there is a 60% chance the contract will pay an additional $2,000 and a 40% chance the contract will pay an additional $3.000, depending on the outcome of the consulting contract. Sanjeev concludes that this contract qualifies for revenue recosnition over time. Assume that Sinieev estimates variable consideration as the most likely amount. After Sanjeev has recognized revenue for two months of the contract. he changes his assessment of the chance the contract will pay him $3,000 to 70%. What adjustment to revenue should 5 anjeev recognize to account for that change in estimate? DRof1.000DRof334CRof1000CRo334 Question 15 On April 1st, Bob the Builder entered into a contract of one-month duration to build a bam for Nolan. Bob is guaranteed to receive a base fee of $5,000 for his services in addition to a bonus depending on when the project is completed. Notan created incentives for Bob to finish the bam as soon as he can without jeopardizing the structural intearity of the barn. Nolan offered to pay an additional 30% of the base fee if the project finished 2 weeks early and 10% it the project frished a week early. The probability of finishing 2 weeks early is 3026 and the protabality of frisishing a week early is 60%. What is the expected transaction price with variable consideration estimuted as the expected value
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