Question: arle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a perform July 31, 2018.
arle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a perform July 31, 2018. The bonus is reduced by $10,000 each week that completion is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior ance bonus of $50,000 if the building is completed by experience, estimates the following completion outcomes: Probability Completed by July 31, 2018 August 7, 2018 August 14, 2018 August 21, 2018 65% | 25% 590 5% The transaction price for this transaction is $995,000 $950,000 $652,500 $685,000
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