spliSplish Company manufactures equipment. Splish's products range 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. Splish has the following arrangement with Winkerbean

Inc.

Winkerbean purchases equipment from Splish for a price of $$930,000$ and contracts with Splish to install the equipment.

Splish charges the same price for the equipment irrespective of whether it does the installation or not. Using market data,

Splish determines installation service is estimated to have a standalone selling price of $$45,000.$ The cost of the equipment is

$$590,000.$

Winkerbean is obligated to pay Splish the $$930,000$ upon the delivery and installation of the equipment.

Splish delivers the equipment on June $1,2020,$ and completes the installation of the equipment on September $30,2020.$ 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.