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Apple Construction Inc. enters into a long term contract to build a new building. The contract is for $400 million and work is expected to
Apple Construction Inc. enters into a long term contract to build a new building. The contract is for $400 million and work is expected to be completed on November 30th of the current year. Apple will receive a $20 million bonus if the work is completed by this November 30th date. Apple has built similar buildings and believes that there is a 90% chance that it will complete the building on time. What is the amount of the transaction price? $420 million $418 million $400 million $380 million
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