On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $68,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that building occupancy exceeds 90%. Emmet estimates a 30% 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 expected value. How much revenue should Emmet recognize on this contract in 2021? Multiple Choice O $37,750 $34,000 $68,000 $35.530 On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $68,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that building occupancy exceeds 90%. Emmet estimates a 30% 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 expected value. How much revenue should Emmet recognize on this contract in 2021? Multiple Choice O $37,750 $34,000 $68,000 $35.530
Expert Answer:
Answer rating: 100% (QA)
ANSWER Revenue that should be recognized is 68000680001530 535... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
On June 1, 2016, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2016. Under the terms of the...
-
The asking price for an apartment building is $1,000,000; rents are estimated at $200,000 during the first year and are expected to grow at 5 percent per year. Vacancies and collection losses are...
-
Multiple Choice Questions 1. A company should recognize revenue when: a. The revenue is earned b. The contract is signed c. The seller satisfies the performance obligation d. The consideration is...
-
Use a linear interpolation to estimate properties of ammonia to fill out the table below P [kPa] T [ C] v [m3/kg] x a) 550 0.75 b) 80 20 c) 10 0.4
-
a. Calculate the payback period in a table. The first three columns of the table will be the year, the cash flow for that year, and the cumulative cash flow. The fourth column will show the whole...
-
Heating potassium chlorate, KClO 3 , yields oxygen gas and potassium chloride. What volume, in liters, of oxygen at 23 C and 760 torr is produced by the decomposition of 4.42 g potassium chlorate?
-
The W14 \(\times 26\) structural A-36 steel member is used as a column that is assumed to be fixed at its top and pinned at its bottom. If the 15-kip load is applied at an eccentric distance of 10...
-
Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a...
-
What is the relationship between organizational investment in employee development programs and the resultant levels of organizational commitment ?
-
Suppose that you are a retailer, and you would like to design your own Supply Chain to launch a new products in a competitive environment. You will procure such a product from a wholesaler who will...
-
Suppose a company purchases employers liability insurance to insure against accidents in the workplace. The probability of an accident occurring is 0.02. The insurance company has recommended that...
-
Your firm uses the perpetual inventory system. Journalize the following transactions using these accounts: Cash, Accounts Receivable/Josti, Merchandise Inventory, Accounts Payable/ CCM, Sales, Sales...
-
The standard costs for product AX14 are: Direct materials: 40 yards at $3.70 per yard $148 Direct labor: 7 hours at $18.00 per hour 126 Total $274 The following information pertains to August: Direct...
-
The net income of Leonard's Resume Writing Service has been reported on the income statement as $51,875. There was an unidentified adjusting entry for accrued salaries of $1,100 that were not...
-
When investing in stocks, bonds, mutual funds there are two basic type of brokers you can use to execute your investment decision. One option is to use a discount broker or online broker, the other i...
-
ACCORDING TO article by the Financial Reporting Policy Committee, contained in article NoIFRSreporting The Committee uses one word to describe the SEC proposal to eliminate the reconciliation. What...
-
Assume you bought 100 shares of NewTech common stock on January 15, 2018 at $50.00 per share and sold it on January 15,2021 for $55.00 per share. What was your annual holding period yield?
-
If you want to solve a minimization problem by applying the geometric method to the dual problem, how many variables and problem constraints must be in the original problem?
-
Two well-known company names in the transportation industry in Canada are Canadian National Railway Company and Canadian Pacific Railway Limited. Go co either SEDAR (www.sedar.com) or to each...
-
Fred Moss, owner of Medici Interiors Inc., is negotiating for the purchase of Athenian Galleries Ltd. The condensed statement of financial position of Athenian follows in an abbreviated form: Medici...
-
Pascale Corp. has the following securities (all purchased in 2014) in its investment ponfolio on December 31, 2014: (1) 2,500 Anderson Corp. common shares, which cost $48,750 (2) 10,000 Munter Ltd....
-
A steel cylinder containing air has a closely fitted piston and a set of stops as shown in Fig. 3.7. The piston is loaded with certain weights. The air inside the cylinder is initially at...
-
What is the difference between compressed liquid and saturated liquid?
-
Calculate the molar volume of methane at \(773 \mathrm{~K}\) and 15 bar using the following methods: (a) Ideal gas equation of state (b) van der Waals equation of state, with \(a=0.2303...
Study smarter with the SolutionInn App