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Sunland Company manufactures equipment. Sunland's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $215,000 to $1,550,000,

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Sunland Company manufactures equipment. Sunland's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $215,000 to $1,550,000, and are quoted inclusive of installation The installation process does not involve changes to the features of the equipment to perform to specifications. Sunland has the following arrangement with Winkerbean Inc. Winkerbean purchases equipment from Sunland on May 2, 2020, for a price of $1,050,000 and contracts with Sunland to install the equipment Sunland charges the same price for the equipment irrespective of whether it does the installation or not Sunland determines that the installation service is estimated to have a fair value of $64,500. The cost of the equipment is $500,000 Winkerbean is obligated to pay Sunland the $985,500 upon delivery of the equipment and the balance on the completion of the installation Sunland 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. Sunland does not have market data with which to determine the stand-alone selling price of the installation services. As a resibit, an expected cost plus margin approach is used. The cost of installation is $35,000; Sunland prices these services with a 25% margin relative to cost. Allocate the transaction price of $1,050,000 among the performance obligations of the contract? Assume Sunland follows IFRS. (Round percentage allocations to 2 decimal places, el. 12.25 and final answers to decimal places, eg. 5,275.) Delivery equipment $ Installation S Prepare any journal entries for Sunland on May 2, June 1, and September 30, 2020. (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 for the amounts. Record joumal entries in the order presented in the problem.) Account Titles and Explanation Date Debit (To record sales) 5 I (To record cost of goods sold)

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