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Your contract allows for a success bonus linked to a completion date. If completion is late, currently assessed as a 30% probability, then the success

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Your contract allows for a success bonus linked to a completion date. If completion is late, currently assessed as a 30% probability, then the success bonus will be zero; If completion is met within 10 days before the completion date, currently assessed as a 60% chance then the bonus is 25,000; and if it is met any earlier, currently assessed as a 10% probability, then the bonus is 40,000. The client has just offered 26,000 to buy out the completion clause, that offer being under active consideration. What is the most appropriate amount of bonus to include in the total contract value when assessing income recognition? 16,000 19.000 25,000 26.000

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