YM Construction (YMC) enters into contracts with customers to construct commercial buildings with RUH Construction. The contracts include similar terms and conditions and contain a fixed fee plus variable consideration for a performance bonus related to the timing of YMCs completion of the construction. Based on YMCs historical experience, the expected bonus amounts and associated probabilities for achieving each bonus are as follows: Bonus amount Probability of outcome $ 10% $ 100,000 60% $ 150,000 30% YMC determines that using the expected value method would better predict the amount of consideration to which it will be entitled because it has a large number of contracts that have characteristics that are similar to the new contract. Under the expected value method, what is the estimate that YMC considers to be variable consideration? Estimating the transaction price using the most likely amount method YMC enters into a six-month advertising campaign agreement ($500,000 fixed fee) that also includes a potential $100,000 performance bonus linked to certain goals. YMC estimates it is 80% likely to receive the entire performance bonus and 20% likely to receive none of the bonus. Under the most likely amount method, what is the estimate that YMC

consider to be variable consideration?