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Garcia Corp. enters into a contract with a customer to build an apartment building for $930,000. The customer hopes to rent apartments at the beginning

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Garcia Corp. enters into a contract with a customer to build an apartment building for $930,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $147,000 to be paid if the building is ready for rental beginning August 1,2023. The bonus is reduced by $49,000 each week that completion is delayed. Garcia commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: (a) Determine the transaction price for this contract, assuming Garcia is only able to estimate whether the building can be completed by August 1,2023, or not. (Garcia estimates that there is a 63\% chance that the building will be completed by August 1. 2023.) Transaction price Determine the transaction price for this contract, assuming Garcia has limited information with which to develop a reliable estimate of completion by the August 1. 2023 deadline. Transaction price

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