Arizona Communications contracted to set up a call center for the City of Phoenix. Under the terms of the contract, Arizona Communications will design and set-up a call center with the following costs:

Design of call center	$20,000
Computers, servers, telephone equipment	$550,000
	$170,000
Installation and testing of equipment	$30,000
Selling commission	$50,000
Annual service contract	$100,000

In addition, Arizona Communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $180,000. Ownership of equipment installed remains with the City of Phoenix. The contract costs that should be capitalized is?