2.99 See Answer

Question: Mike Jones spends five days in a


Mike Jones spends five days in a local private not-for-profit hospital. The hospital charges him $170,000 for the services. His insurance company has contracts with the hospital that will lower the amount that has to be paid. The hospital believes it has a 60 percent chance that the reduction will be $70,000 and a 40 percent chance that the reduction will be $100,000. The hospital applies the expected amount method to variable consideration. What amount of revenue should be reported?
a. $-0-
b. $70,000
c. $88,000
d. $100,000

2.99

See Answer