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Shamrock Corp.enters into a contract with a customer to build an apartment building for $926.000. The customer hopes to rent partments at the beginning of
Shamrock Corp.enters into a contract with a customer to build an apartment building for $926.000. The customer hopes to rent partments at the beginning of the school year and provides a performance bonus of $155.000 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by 551.700 each week that completion is delayed. Shamrock commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes Completed by Probability Apst 1.2021 70 A 2021 August 15. 2021 After August 15.2021 5 al Determine the transaction price for the contract, assuming Shamrock is only to estimate whether the building can be completed by August 1.2021. not Shamrock estimates that there is a 70% chance that the building will be completed by August 1.20211. Onwerp se enter. Do not own on Determine the transaction price for the contract, assuming Shameck has limited information with which to develop a reliable estimate of completion by the 1.2021. deadline Transaction Pres
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