(Answered) Tamarisk corp enters into a contract with a customer to

Accounting

Tamarisk Corp. enters into a contract with a customer to build an apartment building for $930,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $151,500 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $50,500 each week that completion is delayed. Tamarisk commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by Probability
August 1, 2018 70 %
August 8, 2018 20
August 15, 2018 5
After August 15, 2018 5

Determine the transaction price for this contract.

Transaction Price

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