More Info More Info Snyder has constructed similar buildings and sold them for $34 million but does not have experience in garage construction. Snyder is aware of similar garages constructed by their competitors that were sold for $6 million. Snyder determines that control of the building is passed to Rossi as it is constructed, but control of the parking garage will transfer when the garage is completed. Rossi will use the garage for its employees and open it for public parking. The contract price is $30 million for both the building and the garage, but Rossi includes a price adjustment for early or late completion of the building. For each day before September 1, 2021, that the building is completed, the promised consideration will increase by $25,000. For each day after September 1, 2021, that the building is incomplete, the promised consideration will be reduced by $25,000. Snyder considers it 70% likely that it will complete the building seven days early, 10% likely that it will complete the project on time, and 20% likely that the project will be delayed five days. The building is constructed based on Rossi's specifications and would require extensive alterations if used by another entity. The transaction has commercial substance, and Rossi is in good financial health. Due to good weather, Snyder is able to complete the building early. Snyder completes the building and garage on August 21, 2021. Rossi receives control and legal title on these dates. The building also receives the required green building certification on August 21, 2021. Rossi pays Snyder any amounts owed on September 1, 2021. The parties have also agreed that the building will be inspected and assigned a green building certification level. If the building achieves the certification level specified in the contract, Snyder will be entitled to a bonus of $180,000. Snyder has been highly successful in achieving the certification on prior building projects. The terms of the contract stipulate that Rossi will make a $30,000,000 payment to Snyder at the completion of the project. Snyder will have two years or 24 months (until September 1, 2021) to complete the project. Furthermore, Snyder has an enforceable right to demand payment related to performance to date based on time elapsed. Snyder has a normal profit margin of 15% and an interest rate of 10%. It allocates interest revenue on a straight-line basis. It is a calendar-year company that prepares financial statements annually. It uses time elapsed as its measure of progress for performance obligations that are satisfied over time. Print Done Print Done TU U povodny w porTVITTUTTO Vonyaton v vomitum vunomy VIVI Optomet T, ZUCT un to paw the groun vunomy TCMVUTOM. TOUW R uppeur wo vo uomo um compction Step 3: Determine the transaction price. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. Use the same method for all calculations. If using present and future value tables or the formula method, use factor amounts rounded to five dec X.XXXXX. Round intermediary currency computations and your final answers to the nearest whole dollar.) Noncash consideration Significant financing component interest revenue) Significant financing component (sales revenue) Variable consideration More Info More Info Snyder has constructed similar buildings and sold them for $34 million but does not have experience in garage construction. Snyder is aware of similar garages constructed by their competitors that were sold for $6 million. Snyder determines that control of the building is passed to Rossi as it is constructed, but control of the parking garage will transfer when the garage is completed. Rossi will use the garage for its employees and open it for public parking. The contract price is $30 million for both the building and the garage, but Rossi includes a price adjustment for early or late completion of the building. For each day before September 1, 2021, that the building is completed, the promised consideration will increase by $25,000. For each day after September 1, 2021, that the building is incomplete, the promised consideration will be reduced by $25,000. Snyder considers it 70% likely that it will complete the building seven days early, 10% likely that it will complete the project on time, and 20% likely that the project will be delayed five days. The building is constructed based on Rossi's specifications and would require extensive alterations if used by another entity. The transaction has commercial substance, and Rossi is in good financial health. Due to good weather, Snyder is able to complete the building early. Snyder completes the building and garage on August 21, 2021. Rossi receives control and legal title on these dates. The building also receives the required green building certification on August 21, 2021. Rossi pays Snyder any amounts owed on September 1, 2021. The parties have also agreed that the building will be inspected and assigned a green building certification level. If the building achieves the certification level specified in the contract, Snyder will be entitled to a bonus of $180,000. Snyder has been highly successful in achieving the certification on prior building projects. The terms of the contract stipulate that Rossi will make a $30,000,000 payment to Snyder at the completion of the project. Snyder will have two years or 24 months (until September 1, 2021) to complete the project. Furthermore, Snyder has an enforceable right to demand payment related to performance to date based on time elapsed. Snyder has a normal profit margin of 15% and an interest rate of 10%. It allocates interest revenue on a straight-line basis. It is a calendar-year company that prepares financial statements annually. It uses time elapsed as its measure of progress for performance obligations that are satisfied over time. Print Done Print Done TU U povodny w porTVITTUTTO Vonyaton v vomitum vunomy VIVI Optomet T, ZUCT un to paw the groun vunomy TCMVUTOM. TOUW R uppeur wo vo uomo um compction Step 3: Determine the transaction price. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. Use the same method for all calculations. If using present and future value tables or the formula method, use factor amounts rounded to five dec X.XXXXX. Round intermediary currency computations and your final answers to the nearest whole dollar.) Noncash consideration Significant financing component interest revenue) Significant financing component (sales revenue) Variable consideration