please answer with all work like explanation , computation, formula with steps need correct and complete answer for better understanding please answer in text no AI no handwritten no image need accurate answer need answer in text no copy from other answer show explain with reason and calculation clearly please no copy paste from other answer answer in text On January 1st, Bob the Builder entered into a contract of a two-month durationto build a barn. Bob is guaranteed to receive a base fee of $7,000 for his servicesin addition to a bonus depending on when the project is completed. Bob can earnan additional 30% of the base fee if the project finished 2 weeks early and anadditional 10% if the project finished a week early. The probability of finishing 2weeks early is 70% and the probability of finishing a week early is 20%.Required: How much total revenue is estimated if the expected value approach isused?

There can be two parts of the consideration to be received from a contract: 1. Fixed consideration…

Answered: Required: How much total revenue is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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please answer with all work like explanation , computation, formula with steps need correct and complete answer for better understanding please answer in text no AI no handwritten no image need accurate answer need answer in text no copy from other answer show explain with reason and calculation clearly please no copy paste from other answer answer in text

On January 1st, Bob the Builder entered into a contract of a two-month duration
to build a barn. Bob is guaranteed to receive a base fee of $7,000 for his services
in addition to a bonus depending on when the project is completed. Bob can earn
an additional 30% of the base fee if the project finished 2 weeks early and an
additional 10% if the project finished a week early. The probability of finishing 2
weeks early is 70% and the probability of finishing a week early is 20%.
Required: How much total revenue is estimated if the expected value approach is
used?

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