Sunland Company manufactures equipment. Sunlands 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. Sunland has the following arrangement with Winkerbean SA.

Winkerbean purchases equipment from Sunland for a price of 930,000 and contracts with Sunland to install the equipment. Sunland charges the same price for the equipment whether it does the installation or not. Using market data, Sunland determines installation service is estimated to have a standalone selling price of 54,000. The cost of the equipment is 590,000.

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

Sunland delivers and installs the equipment on September 30, 2022. 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.

How should the transaction price of 930,000 be allocated among the service obligations?

Eqyipment ?

Installation ?