Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on june 1, 2021, emmet property management entered

On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing...

90.2K

Verified Solution

Question

Accounting

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 $54,000 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 the revenue recognition over time is appropriate for this contract. Assume that Emmet accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Emmet revises its estimate of the chance the building will exceed the 80% occupancy threshold to a 60% chance. What is the total amount of revenue Emmet should recognize on this contract in November of 2021? (HINT: First, figure out how much revenue was recognized in total PRIOR to November 1.)

Multiple Choice

  • $5,726

  • $1,025

  • $6,750

  • $6,351

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Find a possible formula for the trigonometric function whose values are in the following table. x 0 4 8 12 16 20 24 y 8 4 0 4 8 4 0

Chemistry
1.2K views

Part A Aspirin (acetylsalicylic acid, C9H8O4) is a weak monoprotic acid. To determine its acid-dissociation constant, a...

Chemistry
1.2K views

Calculate [H3O+] and [OH−] for each of the following solutions at 25 ∘C given the pH. Part...

Chemistry
1.2K views

A solution contains 43.0 g of heptane (C7H16) and 46.0 g of octane (C8H18) at 25...

Electrical Engineering
1.2K views

Specify the aliasing frequency of a signal that has a maximum frequency of 75 kHz and...

Biology
1.2K views

A plant that is dioecious could also have perfect flowers 1 True 2 False

Biology
1.2K views

What is the days supply for this prescription?Vicodin 5/325 Disp: 40Sig: 1 TAB PO AC...

Physics
1.2K views

or more than one choice correct type Questions Consider the condition shown in the figure...

Algebra
1.2K views

8 Use the figure to find the exact value of the trigonometric functions sin0 2...

Accounting
1.2K views

Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount)...

Accounting
1.2K views

Complete this question by entering your answers in the tabs below. Refer to the original...

Accounting
1.2K views

Oriole Company purchased equipment for $990000 on January 1, 2020, and will use the double-declining-balance...