Whispering Corp. enters into a contract with a customer to build an apartment building for $979,400. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $144,300 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $48,100 each week that completion is delayed. Whispering commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 5 After August 15, 2021 5 Determine the transaction price for this contract. Transaction Price $enter the transaction price for this contract

Whispering Corp. enters into a contract with a customer to build an apartment building for $979,400. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $144,300 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $48,100 each week that completion is delayed. Whispering commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 5 After August 15, 2021 5 Determine the transaction price for this contract. Transaction Price $enter the transaction price for this contract

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9MC

See similar textbooks

Completed by	Probability
August 1, 2021	70	%
August 8, 2021	20
August 15, 2021	5
After August 15, 2021	5

Similar questions

Bridgeport Corp. enters into a contract with a customer to build an apartment building for $921,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $156,000 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $52,000 each week that completion is delayed. Bridgeport 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 6 After August 15, 2018 4 Determine the transaction price for this contract.
Indigo Corp. enters into a contract with a customer to build an apartment building for $1,061,800. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $139,200 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $46,400 each week that completion is delayed. Indigo commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by August 1, 2021 August 8, 2021 August 15, 2021 After August 15, 2021 Transaction Price Probability 70 % Transaction Price $ 20 6 (a) Determine the transaction price for the contract, assuming Indigo is only able to estimate whether the building can be completed by August 1, 2021, or not (Indigo estimates that there is a 70% chance that the building will be completed by August 1, 2021). (If answer is O, please enter O. Do not leave any fields blank.) 4 (b) Determine the…
Anderson Corp. enters into a contract with a customer to build an apartment building for $995,600. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $145,500 to be paid if the building is ready for rental beginning August 1, 2026. The bonus is reduced by $48,500 each week that completion is delayed. Anderson commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2026 70 % August 8, 2026 20 August 15, 2026 5 After August 15, 2026 5 Determine the transaction price for this contract. Transaction price
Whispering Corp. enters into a contract with a customer to build an apartment building for $1,300,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $195,000 to be paid if the building is ready for rental beginning August 1, 2026. The bonus is reduced by $65,000 each week that completion is delayed. Whispering commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes. August 1, 2026 August 8, 2026 August 15, 2026 After August 15, 2026 Transaction price LA 70% $ 20 Determine the transaction price for this contract. 5 5
Robinson Corp. enters into a contract with a customer to build an apartment building for $990,500. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $147,300 to be paid if the building is ready for rental beginning August 1, 2026. The bonus is reduced by $49,100 each week that completion is delayed. Robinson commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by August 1, 2026 August 8, 2026 August 15, 2026 After August 15, 2026 Transaction price $ Probability Transaction price 70 % $ 20 (a) Determine the transaction price for the contract, assuming Robinson is only able to estimate whether the building can be completed by August 1, 2026, or not (Robinson estimates that there is a 70% chance that the building will be completed by August 1, 2026). 5 5 (b) Determine the transaction price for the contract, assuming Robinson has limited…
Culver Corp. enters into a contract with a customer to build an apartment building for $970,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $171,000 to be paid if the building is ready for rental beginning August 1, 2020. The bonus is reduced by $57,000 each week that completion is delayed. Culver commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2020 70 % August 8, 2020 20 August 15, 2020 5 After August 15, 2020 5 Determine the transaction price for this contract, assuming Culver is only able to estimate whether the building can be completed by August 1, 2020, or not. (Culver estimates that there is a 70% chance that the building will be completed by August 1, 2020.) Transaction price $…
Teal Corp. enters into a contract with a customer to build an apartment building for $1,031,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $144,300 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $48,100 each week that completion is delayed. Teal commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 4 After August 15, 2021 6 (a) Determine the transaction price for the contract, assuming Teal is only able to estimate whether the building can be completed by August 1, 2021, or not (Teal estimates that there is a 70% chance that the building will be completed by August 1, 2021). (If answer is 0, please enter 0. Do not leave any fields blank.) Transaction Price $enter the…
Bramble Corp. enters into a contract with a customer to build an apartment building for $930,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $143,000 to be paid if the building is ready for rental beginning August 1, 2020. The bonus is reduced by $47,667 each week that completion is delayed. Bramble commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2020 70 % August 8, 2020 20 August 15, 2020 5 After August 15, 2020 5 Determine the transaction price for this contract, assuming Bramble is only able to estimate whether the building can be completed by August 1, 2020, or not. (Bramble estimates that there is a 70% chance that the building will be completed by August 1, 2020.) Transaction price $…
Swifty Corp. enters into a contract with a customer to build an apartment building for $1,046,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $148,500 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $49,500 each week that completion is delayed. Swifty commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 4 After August 15, 2021 6 Determine the transaction price for this contract.
Blue Spruce Corp. enters into a contract with a customer to build an apartment building for $830,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $165,000 to be paid if the building is ready for rental beginning August 1, 2020. The bonus is reduced by $55,000 each week that completion is delayed. Blue Spruce commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2020 70 % August 8, 2020 20 August 15, 2020 5 After August 15, 2020 5 Determine the transaction price for this contract, assuming Blue Spruce is only able to estimate whether the building can be completed by August 1, 2020, or not. (Blue Spruce estimates that there is a 70% chance that the building will be completed by August 1, 2020.) Transaction price : ……………? Determine the transaction price for…
Metlock Corp. enters into a contract with a customer to build an apartment building for $1,061,500. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $147,900 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $49,300 each week that completion is delayed. Metlock commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by August 1, 2021 August 8, 2021 August 15, 2021 After August 15, 2021 Probability Transaction Price $ 70 % 20 5 5 (a) Determine the transaction price for the contract, assuming Metlock is only able to estimate whether the building can be completed by August 1, 2021, or not (Metlock estimates that there is a 70% chance that the building will be completed by August 1, 2021). (If answer is 0, please enter 0. Do not leave any fields blank.) (b) Determine the transaction price for…
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 commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by August 1, 2026 August 8, 2026 August 15, 2026 After August 15, 2026 Transaction price $ Probability Transaction price 70 % $ 20 (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). 5 5 (b) Determine the transaction price for the contract, assuming Clark has limited information…