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Riverbed Corp. enters into a contract with a customer to build an apartment building for...

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Accounting

Riverbed Corp. enters into a contract with a customer to build an apartment building for $1,000,800. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $135,600 to be paid if the building is ready for rental beginning August 1,2021. The bonus is reduced by $45,200 each week that completion is delayed. Riverbed commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
\table[[Completed by,Probability],[August 1,2021,70%
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