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Mets Construction enters into a contract with a customer to build a warehouse for $1,000,000 on March 30, 2014 with a performance bonus of $100,000

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Mets Construction enters into a contract with a customer to build a warehouse for $1,000,000 on March 30, 2014 with a performance bonus of $100,000 if the building is completed by July 31, 2017. The bonus is reduced by $10,00 each wedk that completion is delayed. Mets commonly includes these completion bonuses in its contracts and, based on prio experience, estimates the following completion outcomes: Completed by July 31, 2017 August 7, 2017 August 14, 2017 August 21, 2017 Probability 70% 15% 10% 5% A) Deternine the transaction price of this contract, assuming Mets uses Expected Value (probabilityweighd method B) Determine the transaction price of this contract assuming Mets uses Most Likely Outcome method

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