McQueen Corporation (a publicly traded corporation with a calendar fiscal year) entered into an agreement with Walsh Corporation on May 1^st, 2019.McQueen agrees to construct a retail plaza for a contract price of $15 million with a promised completion date of December 31, 2019.If the project is completed by October 31, 2019, McQueen will receive a $3 million bonus. If the project is completed by November 30, 2019 the bonus is $2 million and zero bonus if it is completed on time.McQueen Corp. estimates there is a 15% probability the project will be completed on time, a 75% probability it will be completed by October 31^st, and a 10% probability it will be completed by November 30^th.These probabilities are based on past experience with similar projects.The company has significant experience in these types of projects so it is not expected to have any estimates for revenue to be reversed.

• ASC 606: Revenue from Contracts With Customers

1. Identify the contract with the customer
2. Identify the separate performance obligations in the contract.
3. Determine the transaction price
4. Allocate the transaction price to the separate performance obligations
5. Recognize revenue when each performance obligation is satisfied.

Review the guidance in the codification for revenue.

1.Apply the requirements of revenue from contracts with customers to this transaction.Make sure you apply the detailed guidance from the codification.

2.For each of the five steps:

-Describe how the revenue model applies to this transaction.If any step that is not applicable simply indicate that it is not applicable.

-For step 3 provide detailed calculations on how you determined the transaction price and provide detailed calculations.