Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas's contractspecifies that it will receive a flat fee of $60,000 and an additional $30,000 if Bran reaches a prespecified target amount of costsavings. Thomas estimates that there is a 25% 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 alack of experience with similar consulting arrangements. Calculate the transaction price.1. Using expected value2. Using most likely value3. Using expected value but uncertainTransaction Price

Note : When the chance of occurring an event is more than 50% , then the situation is considered as…

Answered: Thomas Consultants provided Bran…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you help with attached question, thank you in advance.
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