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Crane Construction enters into a contract with a customer to build a warehouse for $830000 on March 30, 2018 with a performance bonus of $60000

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Crane Construction enters into a contract with a customer to build a warehouse for $830000 on March 30, 2018 with a performance bonus of $60000 the building is completed by July 31, 2018. The bonus is reduced by $12000 each week that completion is delayed. Crane commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes Probability Completed by July 31, 2018 August 7, 2018 August 14, 2018 August 21, 2018 Using the expected value approach, the transaction price for this transaction is O $551400 $830000 5539400 $883400 Crane Construction enters into a contract with a customer to build a warehouse for $830000 on March 30, 2018 with a performance bonus of $60000 if the building is completed by July 31, 2018. The bonus is reduced by $12000 each week that completion is delayed. Crane commonly Indudes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by July 31, 2018 Probability 60% August 7, 2018 August 14, 2018 August 21, 2018 Using the expected value approach, the transaction price for this transactio $551400 $830000 $539400 $883400

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