Marle Construction enters into a contract with a customer to build a warehouse for $850,000...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Marle Construction enters into a contract with a customer to build a warehouse for $850,000 on March 30, 2015 with a performance bonus of $50,000 if the building is completed by July 31, 2015. The bonus is reduced by $10,000 each week that completion is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
| Completed by | Probability |
| July 31, 2015 | 65% |
| August 7, 2015 | 25% |
| August 14, 2015 | 5% |
| August 21, 2015 | 5% |
What is the transaction price for this transaction for this contract?
What Method has been used and explain why? (hint: Expected Value or Most Likely Amount)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.