Question: how do I do this? Metlock Corp.enters into a contract with a customer to build apartment building for $963,500. The customer hopes to rent apartments
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Metlock Corp.enters into a contract with a customer to build apartment building for $963,500. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $164.100 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $ 54,700 each week that completion is delayed. Metlock commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 6 After August 15, 2021 4 Determine the transaction price for this contract. Transaction Price $ 963500
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