$.$ Variable Consideration. Sanjeev 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 recognition over time.

a$.$ Assume Sanjeev estimates variable consideration as the most likely amount. What is the amount of

revenue Sanjeev would recognize for the first month of the contract?

b$.$ Assume Sanjeev estimates variable consideration as the expected value. What is the amount of

revenue Sanjeev would recognize for the first month of the contract?