Sunland Company manufactures equipment. Sunland's products range from simple automated machinery to complex systems containing numerous componsts. Unit selling prices range from $$400,000$ to $$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 Page Inc.

Page purchases equipment from Sunland for a price of $$1,040,000$ and contracts with Sunland to install the equipment. Sunland charges the same price for the equipment irrespective of whether it does the installation or not. The cost of the equipment is $$549,000.$

Page is obligated to pay Sunland the $$1,040,000$ upon the delivery and installation of the equipment.

Sunland 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.

Assume Sunland does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $$38,900$; Sunland prices these services with a $20\%$ margin relative to cost$.$