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Indigo Corp. enters into a contract with a customer to build an apartment building for $1,039,000. The customer hopes to rent apartments at the beginning
Indigo Corp. enters into a contract with a customer to build an apartment building for $1,039,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $148,200 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $49,400 each week that completion is delayed. Indigo commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes Probability Completed by August 1, 2018 August 8, 2018 August 15, 2018 After August 15, 2018 70% 20 Determine the transaction price for this contract. Transaction Price 1187200
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