Wilson Corp. enters into a contract with a customer to build an apartment building for $1,069,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $153,300 to be paid if the building is ready for rental beginning August 1,2026. The bonus is reduced by $51,100 each week that completion is delayed. Wilson commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1,2026 70 % August 8,2026 20 August 15, 2026 6 After August 15,2026 4 (3) Determine the transaction price for the contract, assuming Wilson is only able to estimate whether the building can be completed by August 1, 2026, or not (Wilson estimates that there is a 70% chance that the building will be completed by August 1,2026). Transaction price $ 1200716 (b) Determine the transaction price for the contract, assuming Wilson has limited information with which to develop a reliable estimate of completion by the August 1, 2026, deadline. Transaction price 35 1200716 Marigold Inc. is a book distributor that had been operating in its original facility since 1995. The increase in certication programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Marigold since 2020. Marigold's original facility became obsolete by early 2025 because ofthe increased sales volume and the fact that Marigold now carries DVDs in addition to books. On June 1, 2025, Marigold contracted with Black Construction to have a new building constructed for $4,320,000 on land owned by Marigold. The payments made by Marigold to Black Construction are shown in the schedule below. Date Amount July 30, 2025 $972,000 January 30, 2026 1,620,000 May 30, 2026 1,728,000 Total payments $4,320,000 Construction was completed and the building was ready for occupancy on May 27, 2026. Marigold had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2026, the end of its scal year. 10%, 5year note payable of $2,160,000, dated April 1, 2022, with interest payable annually on April 1. 12%, 10*year bond issue of $3,240,000 sold at par on June 30, 2018, with interest payable annually on June 30. The new building qualies for interest capitalization. The effect of capitalizing the interest on the new building, compared with the effect of expensing the interest, is material. (a) X Youranswerisincorrect. ' Compute the weightedaverage accumulated expenditures on Marigold's new building during the capitalization period. Weightedaverage accumulated expenditures $ 1026000