Question

Ejaaz enters into a contract offering variable consideration. The contract pays him $2000/month for six months...

Ejaaz enters into a contract offering variable consideration. The contract pays him $2000/month for six months of continuous consulting services. In addition, there is a 80% chance the contract will pay an additional $4800 and a 20% chance the contract will pay an additional $1200, depending on the outcome of the consulting contract. Ejaaz concludes that this contract qualifies for revenue recognition over time.

Assume Ejaaz estimates variable consideration as the most likely amount. What is the amount of revenue Ejaaz would recognize for the first month of the contract?

$2400

$2800

$2000

$3840

Homework Answers

Answer #1

Comment below if you have any query i will solve it asap !! thanks

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sanjee enters into a contract offering variable consideration. The contract pays him $1100/month for six months...
Sanjee enters into a contract offering variable consideration. The contract pays him $1100/month for six months of continuous consulting services. In addition, there is a 70% chance the contract will pay an additional $2800 and a 30% chance the contract will pay an additional $1200, depending on the outcome of the consulting contract. Sanjee concludes that this contract qualifies for revenue recognition over time. Assume that Sanjee estimates variable consideration as the most likely amount. After Sanjee has recognized revenue...
On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and...
On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Royal will be paid a fixed fee of $60,000 and will receive an additional 10% of the fixed fee at the end of the contract provided that building occupancy exceeds 80%. Royal estimates a 25% chance it will exceed the occupancy threshold, and concludes the revenue...
On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and...
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 $51,000 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 25% chance it will exceed the occupancy threshold, and concludes...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ?...
Financial Reporting and Analysis Assignment #1 Q1. What is IFRS? ? What is the IASB? ? How widespread is the adoption of IFRS around the world? ? What is the possibility of the Securities and Exchange Commission substituting IFRS for GAAP? ? What are the advantages of converting to IFRS? ? What could be the disadvantages of converting to IFRS? ? What is the difference between convergence and adoption? ? When comparing IFRS and GAAP, what are some overall key...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...