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Question - On June 1, 2018, Jasper, Inc. signed a two-year contract to manage and maintain a commercial property complex. The contract begins on July 1, 2018. Under the terms of the contract, Jasper will be paid a fixed fee of $60,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that occupancy exceeds 90%. Jasper estimates a 60% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.
a) Assume Jasper estimates variable consideration as the expected value. How much revenue should Jasper recognize on this contract in 2018?
b) Assume Jasper estimates variable consideration as the most likely amount. How much revenue should Jasper recognize on this contract in 2018?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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