1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iren [92.7K]
3 years ago
9

On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment

building. The contract starts on July 1, 2021. Under the terms of the contract, Royal will be paid a fixed fee of $62,000 and will receive an additional 15% of the fixed fee at the end of the contract provided that building occupancy exceeds 90%. Royal estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume that Royal accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Royal revises its estimate of the chance the building will exceed the 90% occupancy threshold to a 70% chance. What is the total amount of revenue Royal should recognize on this contract in November of 2021
Business
1 answer:
bekas [8.4K]3 years ago
7 0

Answer:

$9,041

Explanation:

The computation of the total amount of revenue Royal should recognize on contracts in November of 2021 is shown below:-

Revenue to be recognized for 4 months = $62,000 × 4 ÷ 12

= $20,667

Total Fees = $62,000 + ($62,000 x 15%)

= $71,300

Revenue recognized at the end of November

= $71,300 × 5 ÷ 12

= $29,708

Revenue recognized in November of 2021

= Revenue recognized at the end of November  - Revenue to be recognized for 4 months

= $29,708 - $20,667

= $9,041

You might be interested in
Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms
-Dominant- [34]

Answer:

Regional Production

Explanation:

Juggernaut, Inc. can manufacture its bulk products by region, that way the distance to each selling point is less and the costs are lower.

7 0
3 years ago
Leigh Delight Candy, Inc. is choosing between two bonds in which to invest their cash. One is being offered from Hershey's and w
Firlakuza [10]

Answer:

Hersey's bond = $1125.513

Mars bond = $1172.259

Explanation:

Hersey bond;

Period(t) = 10years = 40(quartely)

Coupon (C) = $30

Rate (r) = 0.1 = 0.025(quarterly)

Pay at maturity(p) = $1000

Using the both present value (PV) and compound interest formula ;

PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]

PV = [30×(1-(1.025)^-40)÷0.025] + [1000÷(1.025)^40]

PV =( 753.083251562) + (372.4306236)

PV = $1125.513

Mars bond;

Period(t) = 20years = 80(quartely)

Coupon (C) = $30

Rate (r) = 0.1 = 0.025(quarterly)

Pay at maturity(p) = $1000

PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]

PV = [30×(1-(1.025)^-80)÷0.025] + [1000÷(1.025)^80]

PV =(1033.55451663) + (138.704569467)

PV = $1172.259

5 0
3 years ago
Fill in the blanks.
IRISSAK [1]

Answer:

1. work hard .

2. are

3. $15.

Explanation:

1. In terms of Larry's total utility, it is worse for him to work hard .

Larry will prefer to shirk as this is easier for him to do than actually work hard, since he stands to generate $50. So it's worse for him to work hard.

2. Sondra and Larry together are better off if Larry works hard instead of shirking.

Sondra and Larry stand to generate more money if Larry works hard because they will lose if Larry decides to shirk instead.

3. The most Sondra should be willing to pay Carrie to supervise Larry, assuming supervision is sufficient to encourage Larry to work hard, is $15.

She should pay Carry an amount half the amount they stand to lose if Larry shirks. Since they stand to lose $30 if Larry shirks, she can pay Carrie $15 to supervise Larry.

6 0
3 years ago
What do banks usually offer in order to encourage you to put money in a savings account
olya-2409 [2.1K]
They want you to use their banks and save money
6 0
4 years ago
Read 2 more answers
"A client, age 74 has $314,000 in her Traditional IRA. She is required to take an $11,000 RMD for this year. She does not need t
Schach [20]

Answer:

This action will result in her safe-guiding her investment portfolio in equities. For example, in a constant dollar plan, an investor keeps a constant dollar amount of the portfolio in equity securities.<em> If the equities' market value rises, the excess is transferred to fixed-income securities.</em>

Explanation:

4 0
3 years ago
Other questions:
  • When Jack was hired in 2011 at Ford Motor Company, he was offered $14 an hour. His best friend Sam started at the same plant doi
    14·1 answer
  • Before buying an existing business, you need to identify if the business’s problems can be fixed.
    5·2 answers
  • The upper class makes up about 25 percent of the population in the United States. True or False
    13·2 answers
  • 1. What are the three stages in strategic management? Which stage is more analytical? Which relies most on empowerment to be suc
    7·1 answer
  • OpenReader is an Internet lending library in which people list and lend their own books and borrow books from other members. It
    13·1 answer
  • Using the payoff​ matrix, and assuming no collusion between X and​ Y, what is the likely pricing​ outcome? A. Both firms will se
    8·1 answer
  • Anita and Roger, two senior members of Bloncert Inc., and Wilma, their subordinate, are having a discussion about the company's
    8·1 answer
  • Parker Hardware Store had net credit sales of $8,000,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receiva
    15·1 answer
  • Head-First Company plans to sell 5,170 bicycle helmets at $74 each in the coming year. Unit variable cost is $45 (includes direc
    9·1 answer
  • This is really for Economics but...<br><br> How are wages affected by the market?
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!