Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer

hopes to rent apartments at the beginning of the school year and provides a performance bonus of $150,000 to be paid if the

building is ready for rental beginning August 1, 2018. The bonus is reduced by $50,000 each week that completion is delayed.

Nair commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following

completion outcomes:

Completed by Probability

August 1, 2018 70%

August 8, 2018 20

August 15, 2018 5

After August 15, 2018 5

Determine the transaction price for this contract.