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Current Attempt in Progress Pharoah Construction enters into a contract with a customer to build a warehouse for $959000 on March 30, 2026 with a performance bonus of $49000 if the building is completed by July 31, 2026. The bonus is reduced by $8500 each week that completion is delayed. Pharoah commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Current Attempt in Progress Pharoah Construction enters into a contract with a customer to build a warehouse for $959000 on March 30, 2026 with a performance bonus of $49000 if the building is completed by July 31, 2026. The bonus is reduced by $8500 each week that completion is delayed. Pharoah commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 7 of 11 View Policies Current Attempt in Progress Pharoah Construction enters into a contract with a customer to build a warehouse for $959000 on March 30, 2026 with a performance bonus of $49000 if the building is completed by July 31, 2026. The bonus is reduced by $8500 each week that completion is delayed. Pharoah commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability July 31, 2026 August 7, 2026 August 14, 2026 August 21, 2026 65% O $657975. O $689825. O $959000. O $1003750. 25% 5% 5% The transaction price for this transaction is
Transcribed Image Text:Question 7 of 11 View Policies Current Attempt in Progress Pharoah Construction enters into a contract with a customer to build a warehouse for $959000 on March 30, 2026 with a performance bonus of $49000 if the building is completed by July 31, 2026. The bonus is reduced by $8500 each week that completion is delayed. Pharoah commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability July 31, 2026 August 7, 2026 August 14, 2026 August 21, 2026 65% O $657975. O $689825. O $959000. O $1003750. 25% 5% 5% The transaction price for this transaction is
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