Crankshaft Company manufactures equipment. Crankshaft has the following arrangement with Winkerbean Inc.

Winkerbean purchases equipment from Crankshaft for a price of $1,000,000 and contracts with Crankshaft to install the equipment. Crankshaft charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Crankshaft determines installation service is estimated to have a fair value of $50,000. The cost of the equipment is $600,000. W

inkerbean is obligated to pay Crankshaft the $1,000,000 upon the delivery and installation of the equipment.

Crankshaft delivers the equipment on June 1, 2017, and completes the installation of the equipment on September 30, 2017. Assume that the equipment and the installation are two distinct performance obligations. Assume Crankshaft cannot determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $36,000; Crankshaft prices these services with a 25% margin relative to cost. How should the transaction price of $1,000,000 be allocated among the service obligations? Round to whole number (no decimals)

Equipment =

Installation =