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Business, 18.03.2021 01:20 tony7135

Crane Corp. enters into a contract with a customer to build an apartment building for $926,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $155,100 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $51,700 each week that completion is delayed. Crane commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:. Completed by Probability
August 1, 2015 70%
August 8, 2015 20
August 15, 2015 5
After August 15, 2015 5
Determine the transaction price for this contract.

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Crane Corp. enters into a contract with a customer to build an apartment building for $926,900. The...

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