Bob Construction entered into an agreement with Animania Properties for the construction of a shopping centre in Johannesburg for C24 000000 . The pertinent details of the agreement follow: 26 Chapter 4 GAAP: Graded Questions Revenue from contracts with customers Note 1: At contract inception, and after finalising the construction schedule, Bob Construction believes there is a 95% chance the construction will be completed in 24 months and that the company will qualify for the entire bonus amount. Required: Discuss how Bob Construction should calculate the transaction price of the contract with Animania Property Holdings. Part B Bob Construction had a significant store of construction machinery standing idle, which it decided to sell. It managed to sell machinery for C2 880000 to Goofy Property Holdings in January 20X6. Goofy Property Holdings will pay for this machinery in 3 equal instalments, payable annually in arrears. The machinery's cash selling price was C2 250000 . Required: a) Discuss how Bob Construction should calculate and allocate the transaction price from the contract with Goofy Property Holdings for the year ended 31 December 20X6. b) Prepare the journal entries to account for the contract with Goofy Property Holdings for the year ended 31 December 206 and briefly discuss the principles behind the journals Ignore loss allowances