Winthur Incorporated owns and operates high-priced ski resorts in Europe. Winthur recently entered into a contract to provide lodging for several corporate events and conferences sponsored by SueCo for a total fee of $ 10, 060,000 SueCo agreed to additional fees based on conference participant satisfaction surveys. The fee schedule and the related satisfaction survey scores are presented below.

Average Score on Participan Satisfaction

Additional Fee Survey

$58,000 75%-79%

307,000 80%-84%

730,000 85%-89%

965,000 90%-100%

Using past survey experience, Winthur estimates the probabilities that it will receive these scores on the

SueCo participant surveys.

Average Score on Participant

Satisfaction Survey Probability Assessment

75%-79% 10%

80%-84% 14%

85%-89% 23%

90%-100% 53%

Requirement

Using the most-likely-amount approach for measuring variable consideration, determine the transaction price for this contract.

Determine the transaction price for the contract using the most-likely-amount approach.

The estimated transaction price for the contract using the most-likely-amount approach is $