User Account

All Pages

What is the expected transaction price

Assignment Help Accounting Basics
Reference no: EM132549223

Question - On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $5,500 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 25% of the base fee if the project finished 2 weeks early and 15% if the project finished a week early. The probability of finishing 2 weeks early is 25% and the probability of finishing a week early is 60%.

Required - What is the expected transaction price with variable consideration estimated as the expected value?

a. $6,339

b. $5,500

c. $7,174

d. $5,225

Reference no: EM132549223

Questions Cloud

What are the three methods of financial analysis : What are the three methods of financial analysis? What is the purpose of each method? How do stakeholders use the results from financial analysis
Explain job costing and process costing : Explain Job costing and Process costing, highlighting the difference between two with the help of an example.Explain Equivalent units
How the research you look for can be applied in the work : You will select a topic relevant to your practice area, post the topic to Discussion Board 2 for feedback, research the topic, and write a scholarly paper.
What are some ways to evaluate web sources : What are some ways to evaluate web sources? Why is this important?
What is the expected transaction price : On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. What is the expected transaction price
How effective is each reporting system : Write a summary paragraph on each of the three reporting systems: UCR, NIBRS, and the NCVS. How effective is each reporting system?
Make the cost of production report of department for april : Make The cost of production report of Department 2 for April. Umbrella, Inc. uses a process cost system. The department's spoilage was normal
Difference between informational reports and analytical : Do you anticipate using one type more than the other in your career? If yes, which one and why? If not, why not?
Strength and weakness of the mission statement of telus : What are the strength and weakness of the mission statement of Telus and rewrite the vision and mission statement?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

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

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd