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Blue Company enters into a contract with a customer to build a factory for $100,000, with a performance bonus of $10,000 that will be paid

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Blue Company enters into a contract with a customer to build a factory for $100,000, with a performance bonus of $10,000 that will be paid based on the timing of completion. The amount of the performance bonus decreases to $5,000 if construction is completed 1 week late, and it decreases to $1,000 if it is 2 weeks late. The contract is like contracts that Blue has performed previously, and management believes that such experience is predictive. Management estimates that there is a 50% probability that the contract will be completed by the agreed-upon completion date, a 30% probability that it will be completed 1 week late, and a 20% probability that it will be completed 2 weeks late. What is the amount of the $10,000 bonus (variable consideration) that should be allocated to the transaction price using the probability- weighted method

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