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On June 1, 2018, Emmet Property Management Entered into a 2-Year

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On June 1, 2018, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2018. Under the terms of the contract, Emmet will be paid a fixed fee of $50,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that building occupancy exceeds 90%. Emmet estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.
- Assume Emmet estimates variable consideration as the expected value. How much revenue should Emmet recognize on this contract in 2018?

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Definitions:

Conjunctive Adverbs

Words that connect two independent clauses or sentences, providing a smooth transition by indicating comparison, contrast, sequence, or other relationships.

Punctuated Correctly

Marked with the appropriate punctuation marks to clarify meaning and indicate the intended breaks, pauses, and intonations in writing.

Conjunctions

Words that join together sentences, clauses, phrases, or words, such as "and," "but," and "or."

Conjunctive Adverbs

Words that connect two independent clauses or sentences, showing relationship in terms of sequence, contrast, cause and effect, or other relationships.

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