Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 5. thomas consultants provided bran construction w

5. Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomass contract...

70.2K

Verified Solution

Question

Accounting

5. Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomass contract specifies that it will receive a flat fee of $56,000 and an additional $26,000 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.

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

Q

4.60 mol of solid A was placed in a sealed 1.00-L container and allowed to decompose...

Chemistry
Q

The heritability of an animal’s preference for different habitats or host plants might be high or...

Biology
Q

MATLAB CODE: Making cubic spline iterpolation function. Then, To solve use Tridiagonal matrix algorithm(TDMA) xi -0.5 -0.4 -0.2 0 0.2 0.4 0.6 0.8 yi 0.04 0.1 0.4 1 0.35 0.2 0.3 0.04

Mechanical Engineering
Q

I am supposed to do a communication systems project including MATLAB. Topic maybe something related to...

Electrical Engineering
Q

Describe the three (3) “guiding principles” at the foundation of the human resources management.

General Management
Q

Esquire Comic Book Company had income before tax of $1,150,000 in 2016 before considering the following material...

Accounting
Q

K Determine visually whether the function is Is the function odd even or neither OA...

Algebra
Q

An athlete can swim 500 meters in a nearby lake in 9 4 minutes At...

Algebra
Q

On transaction 1 the journal entry "Accounts Payable" is incorrect. It is also not...

Accounting
Q

Bap Compary prodaces leather jacknta and handhag. A jackes requres 8m2 of leather...

Accounting
Q

the notion that auditing could reduce corruption has received considerable attention in both business and...

Accounting
Q

In what fundamental ways does activity-based costing differ from traditional accounting methods, such as job-order...

Accounting