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Vaughn Corp. enters into a contract with a customer to build an apartment building for $ 1 , 0 8 0 , 0 0 0

Vaughn Corp. enters into a contract with a customer to build an apartment building for $1,080,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $162,000 to be paid if the building is ready for rental beginning August 1,2026. The bonus is reduced by $54,000 each week that completion is delayed. Vaughn commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes.
\table[[August 1,2026,70%
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