Pearl Corp.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, 2021. 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: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 6 After August 15, 2021 4 Determine the transaction price for this contract. Transaction Price $ Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for $930,000, payment due at delivery. Groupo sells goods on account to Grifols for $816,000, payment due in 30 days. (b) (c) Groupo sells goods to Magnus for $529,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $491,600. Indicate the transaction price for each of these situations and when revenue will be recognized. (a) (b) (c) Transaction Price $ $ $ Revenue will be recognized At the point of sale At the time of payment e Textbook and Media