Entity A sells cutting machines, and also offers installation and technical support services. The stand-alone selling prices of each product are shown below.

• The sale price of a cutting machine $80,000
• Installation $20,000
• One years service $100,000

Entity B bought a cutting machine on 1 May 2019 and was charged a reduced price of $126,000.

Entity A only reduces its price when customers purchase a package of products together.

REQUIRED:

Measure the revenue earned from Entity B for the year ended 31 December 2019.

ANSWER:

Revenue = $Blank 1