Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on june 1, 2021, emmet property management entered

On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing...

70.2K

Verified Solution

Question

Accounting

On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $54,000 per year and will receive an additional 10% of the fixed fee at the end of each year provided that building occupancy exceeds 80%. Emmet estimates a 20% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume Emmet estimates variable consideration as the expected value. How much revenue should Emmet recognize on this contract in 2021?

Multiple Choice

  • $54,000

  • $27,000

  • $27,540

  • $30,750

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

For this problem, carry at least four digits after the decimal in your calculations. Answers may...

Statistics
Q

The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to...

Finance
Q

how do you know your product is a good one and how do you sell the...

Electrical Engineering
Q

Video Self-Test Tutorial Consider a sample with a mean of 40 and a standard deviation of 5. Use...

Basic Math
Q

A business school claims that students who complete a 3-month typing course can type a mean...

Basic Math
Q

Match the following animal group behavior with their corresponding description Migration Schooling Flocking Herding Swarm...

Biology
Q

The purpose of TE RNase A Buffer is to O a Cut up RNA so...

Biology
Q

Franklin Corporation reported the following operating results for two consecutive years: Required a. Compute...

Accounting
Q

Miller Company's contribution format income statement for the most recent month is shown below Sales...

Accounting
Q

Iom Emory and Jim Morris strolled back to their plant from the administrative offices of...

Accounting
Q

Calculating Cash Collections Problem 1 Accounts receivable at the beginning of the year are...

Finance
Q

A company with 825,000 shares outstanding sells for $120 per share announced a 5-for-6 reverse...

Finance