On April $1,20$X$1,$ Burchell Construction contracted with The Horton Group to build a parking

garage for $$1,200,000.$ The Horton Group is offering a performance bonus of $$100,000$ if the

garage is completed by June $1,201$; the bonus is reduced by $$25,000$ for each week that

completion of the project is late. Based on experience with similar contracts, Burchell

estimates the following probabilities regarding completion of the garage:

What is the transaction price for this contract?

$$1,300,000$

$$1,290,000$

$$1,200,000$

$$1,270,000$