Indigo Corp. enters into a contract with a customer to build an apartment building for $$1,061,800.$ The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $$139,200$ to be paid if the building is ready for rental beginning August $1,2021.$ The bonus is reduced by $$46,400$ 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:

Completed by

August $1,2021$

August $8,2021$

August $15,2021$

After August $15,2021$

Probability

$70\%$

$20$

$6$

$4$

$($a$)$ Determine the transaction price for the contract, assuming Indigo is only able to estimate whether the building can be completed by August $1,2021,$ or not $($Indigo estimates that there is a $70\%$ chance that the building will be completed by August $1,2021).($If answer is

O$,$ please enter $0.$ Do not leave any fields blank.$)$

Transaction Price

$$

$($b$)$ Determine the transaction price for the contract, assuming Indigo has limited information with which to develop a reliable estimate of completion by the August $1,2021,$ deadline.

Transaction Price

$$Indigo Corp. enters into a contract with a customer to build an apartment building for $$1,061,800.$ The customer hopes to rent

apartments at the beginning of the school year and provides a performance bonus of $$139,200$ to be paid if the building is ready for

rental beginning August $1,2021.$ The bonus is reduced by $$46,400$ 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:

$($a$)$ Determine the transaction price for the contract, assuming Indigo is only able to estimate whether the building can be completed by

August $1,2021,$ or not $($Indigo estimates that there is a $70\%$ chance that the building will be completed by August $1,2021).($If answer is

$0,$ please enter $0.$ Do not leave any fields blank.$)$

Transaction Price $

$($b$)$ Determine the transaction price for the contract, assuming Indigo has limited information with which to develop a reliable estimate

of completion by the August $1,2021,$ deadline.

Transaction Price $