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The first image in the question with my incorrect answer and the second image is an attempted response that was incorrect. Please correct the answer
The first image in the question with my incorrect answer and the second image is an attempted response that was incorrect. Please correct the answer and show how you calculated it. Thank You!
X Your answer is incorrect. Shamrock Corp. enters into a contract with a customer to build an apartment building for $1,079,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $153,000 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $51,000 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: Probability 70 % Completed by August 1, 2021 August 8, 2021 August 15, 2021 After August 15, 2021 20 5 5 Determine the transaction price for this contract. A A Transaction Price 1,209,560 Anonymous answered this 253 answers Computation of Expected Performance Bonus Particulars Bonus Amount Probability Expected Value Completion by Aug 1, 2021 $153,000.00 | 70% $107,100.00 $102,000.00 20% $20,400.00 Completion by Aug 8, 2021 $51,000.00 6% Completion by Aug 15, 2021 $3060.00 $0.00 4% $0.00 Completion after Aug 15, 2021 Expected Bonus $130,560.00 Transaction price = $1,079,000 + $130,560 = $1,209,560 hit the like button if you like it thank youStep by Step Solution
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