Sun Devil Corp. enters into a contract with a customer to build an apartment building...
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Sun Devil Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $150,000 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $50,000 each week that completion is delayed. Sun Devil commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by: Probability August 1, 2018 August 8, 2018 August 15, 2018 After Aug 15, 2018| 5% 70% 20% 5% Determine the Transaction Price for this contract using the Expected Value approach: "When recording your answer, do not use S signs or commas. For example, if your answer is $1,000,000, enter your answer as 1000000
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