Clark Corp. enters into a contract with a customer to build an apartment building for...
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Clark 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 1,2026 . The bonus is reduced by $45,200 each week that completion is delayed. Clark corninonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: (a) Determine the transaction price for the contract, assuming Clark is only able to estimate whether the building can be completed by August 1,2026, or not (Clark estimates that there is a 70% chance that the building will be completed by August 1, 2026). Transaction price \$ (b) Determine the transaction price for the contract, assuming Clark has limited information with which to develop a reliable estimate of completion by the August 1, 2026, deadline. Transaction price
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