Question: Questions #2 & #3 Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a
Questions #2 & #3 Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a performance bonus of $50,000 if the building is completed by 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 experience, estimates the following completion outcomes: Completed by Probability July 31, 2018 65% August 7, 2018 25% August 14, 2018 5% August 21, 2018 5% #2 - The transaction price, using "probability weighted method "for this transaction is ? #3 - Thetransaction price, using Most Likely Outcome for this transaction is ? #2. Transaction price using "probability weighted method = $ #3. Transaction price using most likely outcome method = $
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