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Question - Bramble Corp. enters into a contract with a customer to build an apartment building for $1,030,000. The customer hopes to rent apartments at the beginning of the school year and offers a performance bonus of $145,500 to be paid if the building is ready for rental beginning August 1, 2020. The bonus is reduced by $48,500 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 60%
August 8, 2020 20
August 15, 2020 15
After August 15, 2020 5
Required - Determine the transaction price for this contract under IFRS.
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