1.Schultz Fine Arts enters into a contract to build a sculpture for the Art Gallery of Buffalo. The contract is for $50,000 with a $10,000 performance bonus if the company can complete the sculpture one month early. Based on similar contracts in the past, Schultz believes that there is a 60% chance that the company can complete the project one month early. How should Schultz Fine Arts account for this revenue arrangement if the company uses the probability-weighted method?

Select one:

a.$54,000

b.$60,000

c.$50,000

d.$56,000