During the current year, the Jordan family trust, an inter vivos trust, has business income of $220,000. Of this amount, $50,000 is retained in the trust with a joint election….
Determine the Transaction Price for this contract using the Expected Value approach
Hello, the numbers and information has been altered to avoid any violations. 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 70% August 8, 2018 20% August 15, 2018 5% After Aug 15, 2018 5%
Determine the Transaction Price for this contract using the Expected Value approach: $_____________