Question: Scott, Inc. routinely enters into contracts that include bonuses for construction work completed by the agreed-upon-date. Historically, it completes 50% of its jobs on time,

Scott, Inc. routinely enters into contracts that include bonuses for construction work completed by the agreed-upon-date. Historically, it completes 50% of its jobs on time, 20% one week late, and 30% more than two weeks late.

Scott, Inc. enters into a routine contract with Wilson, Inc. Wilson agrees to pay $9,000,000 for construction and an additional $90,000 of bonus if the work is completed on time and zero bonus if the work is not done on-time.

What is the contract price under GAAP revenue recognition theory?

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