Flounder Corp. enters into a contract with a customer to build an apartment building for $987,800.

Flounder Corp. enters into a contract with a customer to build an apartment building for $987,800. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $157,500 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $52,500 each week that completion is delayed. Flounder commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

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