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What is the transaction price for this transaction

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Question - Donner Construction enters into a contract with a customer to build a warehouse for $600,000 on March 30, 2017 with a performance bonus of $30,000 if the building is completed by August 31, 2017. The bonus is reduced by $10,000 each week that completion is delayed. Donner commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by Probability

August 31, 2017 60% probability

September 7, 2017 30%

September 14, 2017 10%

What is the transaction price for this transaction?

$615,000

$630,000

$600,000

$625,000

Reference no: EM132276553

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