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bixtya [17]
2 years ago
11

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

ilding. The contract starts on July 1, 2021. Under the terms of the contract, Emmet will be paid a fixed fee of $60,000 per year and will receive an additional 10% of the fixed fee at the end of each year provided that building occupancy exceeds 80%. Emmet estimates a 25% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume that Emmet accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Emmet revises its estimate of the chance the building will exceed the 80% occupancy threshold to a 60% chance. What is the total amount of revenue Emmet should recognize on this contract in November of 2021
Business
1 answer:
vlada-n [284]2 years ago
6 0

Answer:

$7,500

Explanation:

Calculation to determine the total amount of revenue Emmet should recognize on this contract in November of 2021

First step is to calculate the revenue amount recognized for July, August, September, and October

Recognized revenue =$60,000 × 4/12

Recognized revenue = $20,000

(July, August, September, and October=4 months )

Second step is to calculate the revenue amount to be recognized at the beginning of November

Recognized revenue= $60,000 + ($60,000 × 10%)

Recognized revenue= $66,000

Third step is to calculate the revenue amount recognized at the end of November

Recognized revenue=$66,000 × 5/12

Recognized revenue = $27,500

Now let calculate the total amount of revenue Emmet should recognize on this contract in November of 2021

Total Recognized revenue=$27,500 - $20,000

Total Recognized revenue=$7,500

Therefore the total amount of revenue Emmet should recognize on this contract in November of 2021 will be $7,500

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Answer:

Promotional mix

Explanation:

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So according to the given case, this is an example of promotional mix

3 0
2 years ago
Why is it important to be a good communicator for a successful future?
Lerok [7]

Answer:

Explanation:

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4 0
2 years ago
How many cases of bankruptcy cases are provided for in the bankruptcy code
tia_tia [17]
There are six types of bankruptcy cases that are provided for in the bankruptcy code, They are:

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In short, Your Answer would be Option B

Hope this helps!
4 0
3 years ago
The top global advertising firms have had a lot of mergers in recent years. why?
Tju [1.3M]
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5 0
3 years ago
Lake Incorporated purchased all of the outstanding stock of Huron Company paying $967,000 cash. Lake assumed all of the liabilit
stich3 [128]

Answer:

Goodwill is $262,800

Explanation:

Goodwill is the excess of purchase consideration over fair value of net assets

Fair value of net assets is the fair value of total assets minus fair value of total liabilities

Fair value of total assets=$124,200+$757,000=$881,200

fair value of total liabilities=$177,000

fair value of net assets=$881,200 -$177,000=$704,200

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The correct option is the third option in the multiple choices

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3 years ago
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