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Use the following information for this question and the next question. Air Corp. enters into...

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Accounting

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Use the following information for this question and the next question. Air Corp. enters into a contract with a customer to build an apartment building for $1 million. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $150,000 to be paid if the building is ready for rental by August 1, 2020. The bonus is reduced by $50,000 each week that completion is delayed. Air Corp. commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: 70% chance of completion by August 1, 2020; 20% chance of completion by August 8, 2020; 10% chance of completion by August 15, 2020. Air Corp. follows IFRS. Required: Determine the transaction price under IFRS, (1) assuming Air Corp. uses the expected value approach, and (2) assuming Air Corp. uses the most likely amount approach. (For this question and the next question, round to the nearest dollar, and type numbers only, without the $ sign or commas. For example, if your answer is $5,483.53, type "5484" in the box) Transaction price using the expected value approach: A/ Question 54 (1 point) Transaction price using the most likely amount approach

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