Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer both. i will give a thumbs up immediately if correct and both are completed! Sunland Corp enters into a contract with a customer to

answer both. i will give a thumbs up immediately if correct and both are completed!
image text in transcribed
image text in transcribed
image text in transcribed
Sunland Corp enters into a contract with a customer to build an apartment building for $1,013,300. The customer hopes to rent apartments at the beginning of the school year and prowides a performance bonvs of $152,100 to be paid if the bullding is ready for rental beginning August 1,2021. The bonus is reduced by $50,700 each weck that completion is delayed. Sunland commonly includes these completion bomuses in its contracts and, based on prior experience, estimates the following completion outcomes: Determine the transaction price for this contract. Transaction Price $ Marin Corp. enters into a contract with a customer to bulld an apartment building for $1,069,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $153,300 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $51,100 each week that completion is delayed. Marin commonly includes these completion boruses in its contracts and, based on prior experience. estimates the following completion outcomes: (a) Determine the transaction price for the contract, ansuming Marin is only able to estimate whether the bullding cain be completed by August 1, 2021, or not (Marin estimates that there is a 70% chance that the building will be completed by August 1, 2021), (If answer is 0 , please enter 0 . Do not leave any fields blank) Transaction Price (b) Determine the transaction price for the contract, assuming.Marin has limited information with which to develop a reliable estimate of completion by the August 1, 2021, deadline. Transaction Price $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

African Charter For Internal Audit Of Cooperative Governance

Authors: Donfack MEKONTCHOU ROCHE

1st Edition

6205541777, 978-6205541777

More Books

Students also viewed these Accounting questions

Question

Problem 2.12. Prove that CYN and Y,N T,N =T (*)(*)* -X. Y,N

Answered: 1 week ago