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Hough Costraction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2021, with a performance bonus of $50,000

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Hough Costraction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2021, with a performance bonus of $50,000 if the building is completed by July 31, 2021. The bonus is reduced by $10,000 each week that completion is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability July 31, 2021 = 75% August 7, 2021 = 25% August 14, 2021 = 5% August 21, 2021 = 5% The transaction price for this transaction is... $1,000,000 O $990,000 O $950,000 $995,000 O $1,095,000

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