Alonzo Construction enters into a contract with a customer to build a warehouse for $600,000 on May 31, 2021 with a performance bonus of $80,000 if the building is completed by August 31, 2021. The bonus is reduced by $20,000 each week that completion is delayed. Alonzo commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by	Probability
August 31, 2021	70%
September 7, 2021	20%
September 14, 2021	10%

The transaction price for this transaction is

a.

$600,000

b.

$672,000

c.

$476,000

d.

$420,000