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Ayayai Corp.enters into a contract with a customer to build an apartment building for $930,000. The customer hopes to rent apartments at the beginning of
Ayayai Corp.enters into a contract with a customer to build an apartment building for $930,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $144,000 to be paid if the building is ready for rental beginning August 1, 2020. The bonus is reduced by $48.000 each week that completion is delayed. Ayayai commonly includes these completion bonuses in its contracts and based on prior experience, estimates the following completion outcomes Probability 65 % Completed by August 1, 2020 August 8, 2020 August 15, 2020 After August 15, 2020 20 10 5 Determine the transaction price for this contract under IFRS. Transaction price $
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