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maria [59]
2 years ago
12

Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from sup

pliers. The contract states that Leo will earn a fixed fee of $25,000 and earn an additional $10,000 if Highgate achieves $100,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $100,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
Business
1 answer:
fomenos2 years ago
6 0

Answer:

The transaction price would Leo estimated for this contract is $30,000

Explanation:

The computation of the transaction price is shown below:

= (Fixed fee + additional amount) × chance + fixed fee × chance

= $35,000 × 50% + $25,000 × 50%

= $17,500 + $12,500

= $30,000

hence, the transaction price would Leo estimated for this contract is $30,000

We simply applied the above formula so that the correct answer could come

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According to Herzberg, when ________ are adequate, people won't be dissatisfied, but they will also not be satisfied. motivation
Anastasy [175]

Answer:

The correct answer is letter "B": hygiene factors.

Explanation:

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Though, <em>solving problems related to dissatisfaction will not make employees satisfied. Herzberg concluded that the opposite of satisfaction is no satisfaction and the opposite of dissatisfaction is no dissatisfaction.</em>

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Which statement best describes one way businesses participate in the
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C. Businesses create goods for product markets to sell.

Explanation:

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2 years ago
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Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest semiannually on July 1 and Janu
Vera_Pavlovna [14]

Answer:

1. The selling price of the bonds is $590.976.46

2 .The journal entry for the issuance of the bonds and bond issue costs would be as follows:

                                                      Debit                          Credit

Cash                                             $538,976.26

Discount on bonds payable       $39,023.74

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3. Assuming that Barnett uses IFRS,  the journal entry for the issuance of the bonds would be as follows:

                     Debit                      Credit              

Cash             $600,000

          Bonds Payable             $600,000

Explanation:

In order to calculate the selling price of the bonds we would have to calculate first the present value of particular and present value of interest, hence:

present value of particular=($600,000×0.414643)=$248,785.80

present value of interest=$600,000×4%13.007936=$312,190.46

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2. The journal entry for the issuance of the bonds and bond issue costs would be as follows:

                                                      Debit                          Credit

Cash                                             $538,976.26

Discount on bonds payable       $39,023.74

Unamortized bonds issue costs $22,000

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3. Assuming that Barnett uses IFRS,  the journal entry for the issuance of the bonds would be as follows:

                     Debit                      Credit              

Cash             $600,000

          Bonds Payable             $600,000

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