In May 20X2, the city council of Oshawa, Ontario awarded a $7.6 million contract to Build-It Corp. (BIC) to construct a new community centre in the city. The contract included a clause that provided for an early completion bonus if BIC finished the project at least one month before the scheduled completion date of October 31, 20X3.

The bonus completion schedule, together with BIC’s senior management’s estimates as to the probability of finishing by the specified dates, follows:

Project completion date	Bonus payment	Estimated probability
Prior to July 31, 20X3	$400,000	10%
Between August 1 and 31, 20X3	$300,000	20%
Between September 1 and 30, 20X3	$200,000	40%
October 1, 20X3, or later	$0	30%

BIC’s year end is December 31. It reports its financial results in accordance with IFRS and uses the most likely amount to estimate variable consideration.

What is the transaction price that should be used to recognize revenue for this contract?