Sandhill 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. Sandhill has the following arrangement with Tamarisk Inc. Tamarisk purchases equipment from Sandhill for a price of $1,022,400 and contracts with Sandhill to install the equipment. Sandhill charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Sandhill determines installation service is estimated to have a standalone selling price of $42,600. The cost of t of the equipment Is $560,000. Tamarisk is obligated to pay Sandhill the $1,022,400 upon the delivery of the equipment. Sandhill 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.