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the number in the box is wrong need help again Bonla Company manufictures tqupment. Bonitay 5 products range fromsimpleautomated machinery to cornpler systems containine mumerous

the number in the box is wrong need help again image text in transcribed
Bonla Company manufictures tqupment. Bonitay 5 products range fromsimpleautomated machinery to cornpler systems containine mumerous components. Unit selling prices range from $400000 to $1,500,000 ind are quoted inclusiye of installation. The installation Aroeens does not involve changes to the festures of the equipment and does mot reeqife proprietary informytion aboat the equipment in order for the installed equipment to perform to specifications, Bonita has the following arrangement with Henderson inc. - Henderion purchases equipment from Bonita for a price of \$1,100,000 and contracts with Bonita to irstall the equipment. Bonita charibes the same price for the equipnent irrespective of whetherit does the imatallation or not. The cost of thes equapment is $652000 - Henderson is obligated to pay Bonita the $1.100.000 upon the delwery and installation of the equalpenent. Bonita deivers the equipment on June 1.2020 and completes the installation of the equipment on 5 eptember 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. Assuming Bonita does not have market data with which to determine the standalone selling price of the installation services. Asa result, an expected cost plis marpin approach is used, The cost of installation is 532.500 : Bonita prices these services with a 20% margin relative to cost. (a) \% Your answer is incorrect. How should the transaction price of $1.100,000 be allocated ampong the service obligations? (Do not round intermedlate caiculations Round final anwers to O decimal plocec) Equipment 5

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