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Carla Corp. enters into a contract with a customer to build an apartment building for $ 1,061,800. The customer hopes to rent apartments at the
Carla Corp. enters into a contract with a customer to build an apartment building for $ 1,061,800. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $ 139,200 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $ 46,400 each week that completion is delayed. Carla commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 6 After August 15, 2021 4 Determine the transaction price for this contract. Transaction Price ta $ 1180120
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