Thomas Consultants provided Bran Construction with assistance in Implementing varlous cost-savings Initiatives. Thomas's contract specifies...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Thomas Consultants provided Bran Construction with assistance in Implementing varlous cost-savings Initiatives. Thomas's contract specifies that it will receive a flat fee of $53,000 and an additional $23,000 if Bran reaches a prespecified target amount of cost savings. Thomas estimates that there is a 20% chance that Bran will achieve the cost-savings target. Required: 1. Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price. 2. Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price. 3. Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price. Possible Amounts Probabilities Expected Amounts % = % = Expected contract price at inception S 0
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!
