0530 Check my Brief Exercise 5-15 Variable consideration [LO5-6) in January 2018, Continental Fund Services,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
0530 Check my Brief Exercise 5-15 Variable consideration [LO5-6) in January 2018, Continental Fund Services, Inc, enters into a one year contract with a client to provide investment advisory services The company wa receive a managemert tee, prepid at the begning of the contract, that is calculated as 1 5% of the dent's $30 mhon total assets being managed In addition, the contract spectes that Coritnmtal win receive a performance bonus of 15% of any retums in excess of the return on the Dow Jones Industrial Average market ndex Condinental estimates that it will earn a $2 millon eio performance bonus, but is very uncertain of that estimate, given that the bonus depends on a highly volatile stock market On what transaction price should Continental base revenue recognition(Enter your answer in ie,5,500,000 should be entered as 5.50p
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!
