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Pearl A.G. enters into a contract with a customer to build an apartment building for 1,069,900. The customer hopes to rent apartments at the beginning
Pearl A.G. enters into a contract with a customer to build an apartment building for 1,069,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of 153,300 to be paid if the building is ready for rental beginning August 1,2023 . The bonus is reduced by 51,100 each week that completion is delayed. Pearl commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Determine the transaction price for this contract. Transaction Price
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