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Required information [The following information applies to the questions displayed below.] Hospital Equipment Company (HEC)...

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Accounting

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Required information [The following information applies to the questions displayed below.] Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,500 per machine. HEC usually sells these machines to hospitals at a price $6,880. HEC also separately sells 12 months of training and repair services for fMRI machines for $1,720. HEC is paid $6,880 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair service Required: 1. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair services. Allocated Transaction Price $ 3,500 Equipment Service

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