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Question: Shirly Ngo spends four days in a


Shirly Ngo spends four days in a local private not-for-private hospital. The hospital charges her $140,000 for the services. Her insurance company has contracts with the hospital that will lower the amount that has to be paid. The hospital believes it has a 70 percent chance that the reduction will be $40,000 and a 30 percent chance that the reduction will be $80,000. The hospital applies the most likely outcome method to variable consideration. What amount of revenue should be reported?
a. $-0-
b. $60,000
c. $88,000
d. $100,000

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