Orange Construction Company enters into a long-term contract to build a new stadium. The contract is for $400 million and work is expected to be completed on June 30, 2019. Orange will receive a $20 million bonus if the work is completed by June 30, 2019. Orange has built numerous stadiums and believes that there is a 90% chance that it will complete the project on time. What is the amount of the transaction price?
a. $400 million
b. $418 million
c. $0 because the transaction price is variable
d. $420 million