Golden Company manufactures equipment. Golden's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $400,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Golden has the following arrangement with Omega Inc Omega purchases equipment from Golden for a price of $1,200,000 and contracts with Golden to install the equipment. Golden charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Golden determines installation service is estimated to have a fair value of $50,000. The cost of the equipment is $750,000. Omega is obligated to pay Golden the $1,200,000 upon the delivery and installation of the equipment. Golden delivers the equipment on June 1, 20, and completes the installation of the equipment on September 30, 20. The equipment has a useful life of 10 years. Assume that the equipment and the s installation are two distinct performance obligations which should be accounted for separately. 3. A. How should the transaction price of $1,200,000 be allocated amount the service 9 0 -1 -2 23 24 25 26 B. Prepare the journal entries for Golden for this revenue arrangement in 2020 assuming 27 Golden receives payment when installation is completed. 28 29 Date Account Debit Credit 30 31