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
Answer: B
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It is not a requirement of a negotiable instrument that it
a. be payable in money. b. be payable at a specified or determinable time. c. be payable at a definite time. d. contain an unconditional promise to pay.