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please help Walker Corp. enters into a contract with a customer to build an apartment building for $910,000. The customer hopes to rent apartments at
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Walker Corp. enters into a contract with a customer to build an apartment building for $910,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $126,000 to be paid if the building is ready for rental beginning August 1, 2023. The bonus is reduced by $42,000 each week that completion is delayed. Walker 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, assuming Walker is only able to estimate whether the building can be completed by August 1,2023, or not. (Walker estimates that there is a 61% chance that the building will be completed by August 1, 2023.) Transaction price $ Determine the transaction price for this contract, assuming Walker is only able to estimate whether the building can be completed by August 1,2023, or not. (Walker estimates that there is a 61% chance that the building will be completed by August 1, 2023.) Transaction price eTextbook and Media Determine the transaction price for this contract, assuming Walker has limited information with which to develop a reliable estimate of completion by the August 1. 2023 deadline. Transaction price Step by Step Solution
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