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ziro4ka [17]
3 years ago
15

On June 1, 2021, Andres Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment b

uilding. The contract starts on July 1, 2021. Under the terms of the contract, Andres will be paid a fixed fee of $56,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that building occupancy exceeds 90%. Andres estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.
Required:
1. Assume Andres estimates variable consideration as the expected value. How much revenue should Andres recognize on this contract in 2021?
Business
1 answer:
Romashka [77]3 years ago
7 0

Answer:

429,260

Explanation:

Contract commencement date = July 1 , 2021

Contract payment term = $56,000 / annual

Additional 15% ($8,400) at the end of each year if occupancy exceeds 90%

Estimate of meeting occupancy threshold  = 30%

At the year end 2012, Contract timeline = 6 month (1/2 year)

Base revenue recognized 56000/2 = $28,000

Additional payment = (8400*30% )/2 =$1260

Revenue recognized at December 31 , 2021 = $28000+ $1260 = $29,260

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Sub Sandwiches of America made the following expenditures related to its restaurant.
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Answer:

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Answer:

C. y = 11000(1.086)^7

Explanation:

Given the following data;

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A = P(1 + \frac{r}{100})^{t}

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