Question 1 of 3 3.09/10 !!! Crane Company manufactures equipment. Crane's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $250,000 to $1,510,000, and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment to perform to specifications. Crane has the following arrangement with Winkerbean Inc. Winkerbean purchases equipment from Crane on May 2, 2020, for a price of $990,000 and contracts with Crane to install the equipment. Crane charges the same price for the equipment irrespective of whether it does the installation or not. Crane determines that the installation service is estimated to have a fair value of $52,000. The cost of the equipment is $800,000. Winkerbean is obligated to pay Crane the $938,000 upon delivery of the equipment and the balance on the completion of the installation Crane delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. Assume that the equipment and the installation are two distinct performance obligations that should be accounted for separately. Crane does not have market data with which to determine the stand-alone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $33,000; Crane prices these services with a 25% margin relative to cost.