Variable Consideration On March 1, 2017, Elkhart enters into a new contract to build a specialized warehouse for $7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2017, Elkhart will receive a bonus of $600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by $150,000. Elkhart provides the following completion schedule: Expected Completion Date Probability November 30, 2017 December 7, 2017 December 14, 2017 December 21, 2017 December 28, 2017 Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 60% 20 10 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? Transaction price