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On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Noah. Bob is guaranteed to receive a

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On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Noah. Bob is guaranteed to receive a base fee of $5,800 for his services in addition to a bonus depending on when the project is completed. Noah created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Noah offered to pay an additional 25% of the base fee if the project finished 2 weeks early and 15% if the project finished a week early. The probability of finishing 2 weeks early is 25% and the probability of finishing a week early is 60%. What is the expected transaction price with variable consideration estimated as the most likely amount? Multiple Choice S6,670 S5.800 S7351 55.510

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