Question: answer both. i will give a thumbs up immediately if correct and both are completed! Sunland Corp enters into a contract with a customer to

answer both. i will give a thumbs up immediately if correct and both are completed!
answer both. i will give a thumbs up immediately if correct and
both are completed! Sunland Corp enters into a contract with a customer
to build an apartment building for $1,013,300. The customer hopes to rent

Sunland Corp enters into a contract with a customer to build an apartment building for $1,013,300. The customer hopes to rent apartments at the beginning of the school year and prowides a performance bonvs of $152,100 to be paid if the bullding is ready for rental beginning August 1,2021. The bonus is reduced by $50,700 each weck that completion is delayed. Sunland commonly includes these completion bomuses in its contracts and, based on prior experience, estimates the following completion outcomes: Determine the transaction price for this contract. Transaction Price $ Marin Corp. enters into a contract with a customer to bulld an apartment building for $1,069,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $153,300 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $51,100 each week that completion is delayed. Marin commonly includes these completion boruses in its contracts and, based on prior experience. estimates the following completion outcomes: (a) Determine the transaction price for the contract, ansuming Marin is only able to estimate whether the bullding cain be completed by August 1, 2021, or not (Marin estimates that there is a 70% chance that the building will be completed by August 1, 2021), (If answer is 0 , please enter 0 . Do not leave any fields blank) Transaction Price (b) Determine the transaction price for the contract, assuming.Marin has limited information with which to develop a reliable estimate of completion by the August 1, 2021, deadline. Transaction Price $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!