Brunetti Co

question 160

Essay

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

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Definitions:

Dividend Payout

The portion of the earnings a company decides to pay to its shareholders in the form of dividends.

Stock Prices

The current market price of a company's shares, representing the valuation that the market assigns to a single share of the company's stock.

Dividend Policy

A company’s strategy or guidelines set for allocating a portion of its earnings back to its shareholders in the form of dividends.

Automatic Reinvestment

A plan that allows investors to automatically reinvest dividends or capital gains back into the security that generated them.