Ivanhoe Company manufactures products ranging from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 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. Ivanhoe has the following arrangement with Kingbird Inc. - Kingbird purchases equipment from Ivanhoe for a price of $1,050,700 and contracts with Ivanhoe to install the equipment. Ivanhoe charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Ivanhoe determines installation service is estimated to have a standalone selling price of $55,300. The cost of the equipment is $540,000. - Kingbird is obligated to pay Ivanhoe the $1,050,700 upon the delivery of the equipment. Ivanhoe delivers the equipment on June 1, 2025, and completes the installation of the equipment on September 30, 2025. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately. (a) Your answer is correct. How should the transaction price of $1,050,700 be allocated among the performance obligations? (Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275 .) Prepare the journal entries for Ivanhoe for this revenue arrangement on June 1, 2025 and September 30, 2025, assuming Ivanhoe receives payment when the equiptment is delivered. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)