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Calculate the transaction price

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Question

Brunetti Co. designed and installed customized signs for Di Antonio CPA, Inc. Brunetti's contract specifies that it will receive a flat fee of $15,000 for providing the customized signs, and an additional $1,000 if 30% of Di Antonio's new customers indicate they first learned of Di Antonio because of the signs. Based on historical experience, Brunetti estimates that there is a 90% chance it will achieve the threshold to receive a bonus.

Required:

Assuming Brunetti uses the most likely value to estimate the variable consideration, calculate the transaction price.

Reference no: EM132380347

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