On June $1,2024,$ Emmet Property Management entered into a $2-$year contract to oversee leasing and maintenance for an apartment building. The contract starts on July $1,2024.$ Under the

terms of the contract, Emmet will be paid a fixed fee of $$63,000$ per year and will receive an additional $10\%$ of the fixed fee at the end of each year provided that building occupancy exceeds

$80\%.$ Emmet estimates a $20\%$ chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.

Assume Emmet estimates variable consideration as the most likely amount. How much revenue should Emmet recognize on this contract in $2024?$

Multiple Choice

$$31,500$

$$32,130$

$$35,250$

$$63,000$