Question: Current Attempt in Progress Flint Corp. enters into a contract with a customer to build an apartment building for $910,000. The customer hopes to rent

 Current Attempt in Progress Flint Corp. enters into a contract with

Current Attempt in Progress Flint Corp. enters into a contract with a customer to build an apartment building for $910,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $126,000 to be paid if the building is ready for rental beginning August 1, 2020. The bonus is reduced by $42,000 each week that completion is delayed. Flint commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2020 65 % August 8, 2020 20 August 15, 2020 10 After August 15, 2020 5 Determine the transaction price for this contract under IFRS. 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!