Zentric Garage Inc. enters into a contract to provide services totaling $78,000. The contract includes a potential performance bonus based on when Zentric Garage completes the services. Zentric Garage estimates the following scenarios for completion. (Click the icon to view the scenarios.) Determine the bonus using the most-likely-amount approach. Determine the bonus using the most-likely-amount approach under scenario 1. The bonus for this contract using the most-likely-amount approach under scenario 1 is $ Determine the bonus using the most-likely-amount approach under scenario 2. The bonus for this contract using the most-likely-amount approach under scenario 2 is $ Determine the bonus using the most-likely-amount approach under scenario 3. The bonus for this contract using the most-likely-amount approach under scenario 3 is $ Ente Scenarios Complete within 3 days 5 days 8 days Bonus Scenario 1 $ 13,000 80% $ 8,000 15% $ 3,500 5% Print Done Probability Scenario 2 47% 38% 15% Scenario 3 0% 85% 15%
Zentric Garage Inc. enters into a contract to provide services totaling $78,000. The contract includes a potential performance bonus based on when Zentric Garage completes the services. Zentric Garage estimates the following scenarios for completion. (Click the icon to view the scenarios.) Determine the bonus using the most-likely-amount approach. Determine the bonus using the most-likely-amount approach under scenario 1. The bonus for this contract using the most-likely-amount approach under scenario 1 is $ Determine the bonus using the most-likely-amount approach under scenario 2. The bonus for this contract using the most-likely-amount approach under scenario 2 is $ Determine the bonus using the most-likely-amount approach under scenario 3. The bonus for this contract using the most-likely-amount approach under scenario 3 is $ Ente Scenarios Complete within 3 days 5 days 8 days Bonus Scenario 1 $ 13,000 80% $ 8,000 15% $ 3,500 5% Print Done Probability Scenario 2 47% 38% 15% Scenario 3 0% 85% 15%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....
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![Zentric Garage Inc. enters into a contract to provide services totaling $78,000. The contract includes a potential performance bonus
based on when Zentric Garage completes the services. Zentric Garage estimates the following scenarios for completion.
(Click the icon to view the scenarios.)
Determine the bonus using the most-likely-amount approach.
Determine the bonus using the most-likely-amount approach under scenario 1.
The bonus for this contract using the most-likely-amount approach under scenario 1 is $
Determine the bonus using the most-likely-amount approach under scenario 2.
The bonus for this contract using the most-likely-amount approach under scenario 2 is $
Determine the bonus using the most-likely-amount approach under scenario 3.
The bonus for this contract using the most-likely-amount approach under scenario 3 is $
Ente
Scenarios
Complete within
3 days
5 days
8 days
Probability
Bonus Scenario 1 Scenario 2
80%
47%
15%
38%
5%
15%
$ 13,000
$ 8,000
$ 3,500
Print Done
Scenario 3
0%
85%
15%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff899cda2-7d27-4522-955b-701584f8a1e8%2Ffc52efba-cad4-458d-b6ab-5561acbd31b9%2Fvt7qpph_processed.png&w=3840&q=75)
Transcribed Image Text:Zentric Garage Inc. enters into a contract to provide services totaling $78,000. The contract includes a potential performance bonus
based on when Zentric Garage completes the services. Zentric Garage estimates the following scenarios for completion.
(Click the icon to view the scenarios.)
Determine the bonus using the most-likely-amount approach.
Determine the bonus using the most-likely-amount approach under scenario 1.
The bonus for this contract using the most-likely-amount approach under scenario 1 is $
Determine the bonus using the most-likely-amount approach under scenario 2.
The bonus for this contract using the most-likely-amount approach under scenario 2 is $
Determine the bonus using the most-likely-amount approach under scenario 3.
The bonus for this contract using the most-likely-amount approach under scenario 3 is $
Ente
Scenarios
Complete within
3 days
5 days
8 days
Probability
Bonus Scenario 1 Scenario 2
80%
47%
15%
38%
5%
15%
$ 13,000
$ 8,000
$ 3,500
Print Done
Scenario 3
0%
85%
15%
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