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Marle Construction enters into a contract with a customer to build a warehouse for $1000000 on March 30, 2018 with a performance bonus of $70000
Marle Construction enters into a contract with a customer to build a warehouse for $1000000 on March 30, 2018 with a performance bonus of $70000 if the building is completed by July 31, 2018. The bonus is reduced by $15000 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: Calculate the transaction price. Completed by Probability July 31, 2018 65% August 7, 2018 25% August 14, 2018 5% August 21, 2018 5%
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