Entity A enters into a contract to construct a building for a customer. The contract price is $40,000,000 and the specified completion date is 31 December 2021. The contract also provides that the entity would receive an incentive payment of $2,000,000 if the building is completed by 31 October 2021. However, the price will be reduced by a penalty of $2,000,000 if the building is not completed until after 28 February 2022. The entity estimates that there is a 10% probability that the building will be completed by 31 October 2021, and an 85% probability that it will be completed during the period 1 November 2021 to 28 February 2022 and a 5% probability that it will not be completed until after 28 February 2022.

REQUIRED: Evaluate the expected value of the transaction price for this contract.