5. (8 points) Agee enters into a contract with Pipkin Video to add their programs...
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5. (8 points) Agee enters into a contract with Pipkin Video to add their programs to Agee's network. Pipkin will pay Agee an upfront fee of $250,000 for 12 months of access and will also pay a $100,000 bonus if Agee's users access Pipkin Video for at least 10,000 hours during the 12 month period. Agee estimates that it has a 55% chance of earning the $100,000 bonus. a. Refer to Agee Corporation. Using the expected-value approach, determine the transaction price. b. Refer to Agee Corporation. Using the most-likely-amount approach, determine the transaction price
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