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6. Vermes enters into a contract offering variable consideration. The contract pays him $10,000/month for...

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Accounting

6. Vermes enters into a contract offering variable consideration. The contract pays him $10,000/month for six months of continuous consulting services. In addition, there is an 80% chance the contract will pay an additional $15,000 bonus. There is a 20% chance Vermes receives no bonus. Vermes concludes that this contract qualifies for revenue recognition over time. Assume the estimated variable consideration is not subject to a significant reversal and Vermes estimates variable consideration as the most likely amount. What is the amount of revenue Vermes would recognize for the first month of the contract? (1.5 points)
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6. Vermes enters into a contract offering variable consideration. The contract pays him $10,000/ month for six months of continuous consulting services. In addition, there is an 80% chance the contract will pay an additional $15,000 bonus. There is a 20% chance Vermes receives no bonus. Vermes concludes that this contract qualifies for revenue recognition over time. Assume the estimated variable consideration is not subject to a significant reversal and Vermes estimates variable consideration as the most likely amount. What is the amount of revenue Vermes would recognize for the first month of the contract? (1.5 points)

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