Question: what would be the appropriate transaction price? ABC designed and installed a customized display for DEF. ABC contract specifies that it will receive a fix
what would be the appropriate transaction price?

ABC designed and installed a customized display for DEF. ABC contract specifies that it will receive a fix fee of P20,000 for providing the display and an additional P1,333.33 if 30% of DEF's new customers indicate they first learned of DEF because of the display from DEF. Based on historical experience, ABC estimates that there is a 90% chance it will achieve the threshold to receive a bonus. Assuming ABC determines transaction price as the "expected value" of the variable consideration, what would be the appropriate transaction price? [A] 21,200 [B] 21,333 [C] 20,000 [D] 20,360
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