Zeta Brands inc. Specializes in waterproofing homes, oface buildings, and other stmetures, Recently it commetis...

80.2K

Verified Solution

Question

Accounting

Zeta Brands inc. Specializes in waterproofing homes, oface buildings, and other stmetures, Recently it commetis a waterproofing renovation for a bullding at a local universty. The contract specifies that zeta brands will recieve a flat lump Sum of $119,000, for the renovation, and an additional $4,400 if there is no water leaking through the roof within the first year after. The Seller estimates there is an 80% chance no leakage will occur within the first year. a) assuming zeta brands uses the most likely value to estimate variable consideration, calc. transaction price b) ossuming transaction phee as the "expected value" of the variable Consideration, Calc, transaction price,
C) assurning zeta uses "expected value" approach, but is very uncertain of that istimate due to a lack of expenence, calc transaction price
\table[[Rec A+C
image

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