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Larkspur Corp. enters into a contract with a customer to build an apartment building for $991, 300. The customer hopes to rent apartments at the
Larkspur Corp. enters into a contract with a customer to build an apartment building for $991, 300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $147, 900 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $49, 300 each week that completion is delayed. Larkspur commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Determine the transaction price for this contract. Transaction Price $
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