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Determine the transaction price for this contract, assuming Harris is only able to estimate whether the building can be completed by August 1.2023, or not.

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Determine the transaction price for this contract, assuming Harris is only able to estimate whether the building can be completed by August 1.2023, or not. (Harris estimates that there is a 59% chance that the building will be completed by August 1, 2023.) Transaction price Harris Corp. enters into a contract with a customer to build an apartment building for $750,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $153,000 to be paid if the building is ready for rental beginning August 1,2023 . The bonus is reduced by $51,000 each week that completion is delayed. Harris commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Determine the transaction price for this contract, assuming Harris has limited information with which to develop a reliable estimate of completion by the August 1,2023 deadline. Transaction price \$ eTextbook and Media Attempts: 4 of 5 used

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