Siddhi enters into a contract offering variable consideration. the contract pays siddhi $2,000/month for six months of continuous consulting services. in addition, there is a 60% chance the contract will pay an additional $4,000 and a 40% chance the contract will pay an additional $6,000, depending on the outcome of the consulting contract. siddhi concludes that this contract qualifies for revenue recognition over time. assume siddhi estimates variable consideration as the most likely amount. what is the amount of revenue siddhi would recognize for the first month of the contract?
a. $2,000
b. $2,667
c. $2,800
d. $2,400
Answers: 3
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