Bookman Co$.$ develops digital accounting systems and provides accounting$-$related consulting services.

On January $1,$ Year $1,$ Bookman signs a contract with Brock Florists to install a system and provide consulting services over a two$-$year period ending in late December of Year $2.$ The contract calls for an upfront payment of $$25,000$ a second payment of $$10,000$ in March of Year $1,$ and a third payment of $$20,000$ in December of Year $1.$ What is the transaction price?

Use the same information in Part a$,$ but assume that the third payment in December Year $1$ is contingent on Brock$$s need for the accounting consulting, specifically whether Brock Florists successfully completes a planned merger with a small privately owned pottery company. Brock has completed several mergers in the past and the Brock$$s management believes that the completion of the current merger is probable. The possible outcomes and likelihoods are $(1)$ the merger occurs as planned $(80\%$ chance$)$ or $(2)$ the merger fails to occur $(20\%$ chance$).$ What is the transaction price?