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  3. allen corp. enters into contract with a customer t

Allen corp. enters into contract with a customer to build an apartment building for $1031,300....

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Accounting

Allen corp. enters into contract with a customer to build an apartment building for $1031,300. The customers hopes to rent apartment at the begining of the school year and provides a performance bonus of $144,300 to be paid if the building is ready for rental begining August 1,2026. The bonus is reduced by $48,100 each week that completion is delayed . Allen commonly includes these cimoletion bonuses in its contracts and ,based on prio experience, estimates the gollowing completion outcomes: completed by August 1,202670%, August 8,202620%, August 15,20264%, August 15,20264%, After August 15,20266% Determine the tranaction price for the contract, assiming Allen is only able to estimate whether the building can be completed by August 1,2026, or not(Allen estimates thst there is a 70% chance that the building will be completed by August 12026). Answer is NOT 1153474

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