Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 6. vermes enters into a contract offering variable

6. Vermes enters into a contract offering variable consideration. The contract pays him $10,000/month for...

80.2K

Verified Solution

Question

Accounting

6. Vermes enters into a contract offering variable consideration. The contract pays him $10,000/month for six months of continuous consulting services. In addition, there is an 80% chance the contract will pay an additional $15,000 bonus. There is a 20% chance Vermes receives no bonus. Vermes concludes that this contract qualifies for revenue recognition over time. Assume the estimated variable consideration is not subject to a significant reversal and Vermes estimates variable consideration as the most likely amount. What is the amount of revenue Vermes would recognize for the first month of the contract? (1.5 points)
image
6. Vermes enters into a contract offering variable consideration. The contract pays him $10,000/ month for six months of continuous consulting services. In addition, there is an 80% chance the contract will pay an additional $15,000 bonus. There is a 20% chance Vermes receives no bonus. Vermes concludes that this contract qualifies for revenue recognition over time. Assume the estimated variable consideration is not subject to a significant reversal and Vermes estimates variable consideration as the most likely amount. What is the amount of revenue Vermes would recognize for the first month of the contract? (1.5 points)

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

As a Health Care IT consultant, you will work with various team members at the corporate...

General Management
Q

Experimental Inquiry What Can You Learn About the Process of Science from Investigating a Cricket...

Biology
Q

A tram is moving to the left at 6 m s and decelerating at 4...

Physics
Q

Two identical thin rotating rings move along a smooth horizontal plane towards each other Their...

Physics
Q

The following group of values was entered into the TVM Solver of a graphin calculator...

Geometry
Q

A water tank is in the shape of a cylinder with a height of 21...

Basic Math
Q

Assume that a surface S has the property that |k?| ? 1,|k?| ? 1 everywhere.Is...

Algebra
Q

Suppose that f(100) = 5000 and f'(100) = 20. Estimate each of the following.(b) f(100.5)(c)...

Algebra
Q

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three...

Accounting
Q

Explain the difference between ideal standards and normal standards (Ideal standard versus normal standards).

Accounting
Q

Post the January 2024 transactions. (Post entriesin the order of journal entries presented in the...

Accounting
Q

Problem 25-60 (LO 25-4) (Algo) Jones is seriously ill and has $3.8 million of property...

Accounting