hard · Financial Accounting revenue-recognition

Which of the following scenarios would most likely require the use of the 'expected value' method rather than the 'most likely amount' method for estimating variable consideration?

1. A retailer offers a tiered volume discount based on total annual purchases by a large customer base.
2. A law firm is paid a success fee only if they win a specific court case.
3. A contractor is entitled to a fixed $50,000 bonus if a building is finished by a certain date.
4. A pharmaceutical company receives a milestone payment only if a drug receives FDA approval.

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