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William Corp enters into a contract with a customer to build an apartment building for $1,056,300. The customer hopes to rent apartments at the beginning

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William Corp enters into a contract with a customer to build an apartment building for $1,056,300. The customer hopes to rent apartments at the beginning of the school vear and provides a performance bonus of $136,200 to be paid if the building is ready for rental beginning August 1,2026 . The bonsts is reduced by $45,400 each weck that completion is delared. William commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: (a) Determine the transaction price for the contract, assuming William is only able to estimate whether the building can be completed by August 1, 2026, or not (William estimates that there is a 70 . churice that the building will be completed by Aupust 1, 2026). Transaction price 5 (b) Determine the transaction price for the contract, assuming William has limited information with which to develop a reliable estimate of completion by the August 1,2026, deadline. Transaction price William Corp enters into a contract with a customer to build an apartment building for $1,056,300. The customer hopes to rent apartments at the beginning of the school vear and provides a performance bonus of $136,200 to be paid if the building is ready for rental beginning August 1,2026 . The bonsts is reduced by $45,400 each weck that completion is delared. William commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: (a) Determine the transaction price for the contract, assuming William is only able to estimate whether the building can be completed by August 1, 2026, or not (William estimates that there is a 70 . churice that the building will be completed by Aupust 1, 2026). Transaction price 5 (b) Determine the transaction price for the contract, assuming William has limited information with which to develop a reliable estimate of completion by the August 1,2026, deadline. Transaction price

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