Donner Construction Enters into a Contract with a Customer to Build

question 18

Multiple Choice

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% September 7, 2017 30% September 14, 2017 10%
What is the transaction price for this transaction?

• A) $630,000
• B) $625,000
• C) $615,000
• D) $600,000

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Definitions:

Verbal Report

The oral transmission of information from one health care provider to another, often used in shift changes or during patient handoffs.

Electronic Record Entry

The process of entering patient information and medical data into a digital system, contributing to the electronic health record (EHR).

Acuity Rating

A classification system used in healthcare to assess the severity of a patient’s condition and determine the level of care needed.

Community Resources

Various types of support and facilities available within a community that improve the quality of life for its members.