une 1, 2014, Morrison Construction enters into a contract with the Utica School System to build a K-8 school for $10,000,000 to be completed by the start of the school year on September 2nd. Utica School System hopes to allow their teachers into the school a few weeks before the beginning of the new year in order to prepare their classrooms. They offer Morrison a performance bonus of $400,000 if the building is ready for occupation by August 4, 2014. The bonus is reduced by $100,000 each week that completion is delayed. Morrison commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Probability 70% Completed by August 4, 2014 August 11, 2014 August 18, 2014 August 25, 2014 25. If Morrison determines the transaction price assuming the Expected Value Method, the transaction price will be: a. $6,760,000 b. $8,550,000 c. $10,000,000 d. $10,350,000 e. $10,400,000 26. Morrison is only able to estimate whether the school can be completed by August 4, 2014 or not Morrison estimates there is a 70% chance the building will be completed by August 4, 2014 Using the Most Likely Outcome approach, Morrison would record a transaction price of: a. $6,760,000 b. $8,550,000 c. $10,000,000 d. $10,350,000 e. $10,400,000