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6/1/2019 Alby Corp. enters into a contract with a town to build a giant playground for $100,000. The town wants the playground to be done

6/1/2019 Alby Corp. enters into a contract with a town to build a giant playground for $100,000.
The town wants the playground to be done before school starts so provides a
performance bonus of $15,000 if the playground is ready to use on September 1.
The bonus is reduced by $5,000 each week the completion is delayed.
Alby commonly includes these completion bonuses in its contracts, and, based on
prior experience, estimates the following completion outcomes.
Completed by Probablilty
1-Sep-19 60%
9/8/2018 30%
9/15/2018 10%
A THE TRANSACTION PRICE FOR THIS CONTRACT IS____________________
B Assume the same information as in part A except that Alby Corp. has never had any experience
with completion bonuses in the past.
THE TRANSACTION PRICE FOR THIS CONTRACT IS____________________

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