Sanjeev enters into a contract offering variable consideration. The contract pays him $3,000/month for six months of con

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Sanjeev Enters Into A Contract Offering Variable Consideration The Contract Pays Him 3 000 Month For Six Months Of Con 1 (103.9 KiB) Viewed 30 times

Sanjeev enters into a contract offering variable consideration. The contract pays him $3,000/month for six months of continuous consulting services. In addition, there is a 70% chance the contract will pay an additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending on the outcome of the consulting contract. Sanjeev concludes that this contract qualifies for revenue recognition over time. Assume Sanjeev estimates variable consideration as the most likely amount. What is the amount of revenue Sanjeev would recognize for the first month of the contract? Multiple Choice O $3,000 $2,450 $3,583 $3,900