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Can anyone help me? Teal Corp. enters into a contract with a customer to build an apartment building for $963,500. The customer hopes to rent
Can anyone help me?
Teal Corp. enters into a contract with a customer to build an apartment building for $963,500. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $164,100 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $54,700 each week that completion is delayed. Teal commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:Completed by | Probability | |
August 1, 2018 | 70 | % |
August 8, 2018 | 20 | |
August 15, 2018 | 6 | |
After August 15, 2018 | 4 |
Transaction Price | $ |
Transaction Price | $ |
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