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Sunland Company manufactures products ranging from simple automated machinery to comptex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation, The installation proces 5 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 Bramble Inc. - Bramble purchases equipment from Sunland for a price of $1,035,500 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 $581,000. - Bramble is obligated to pay Sunland the $1,035,500 upon the delivery 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. Assuming 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 $43,600; Sunland prices these services with a 25% margin relative to cost. How should the transaction price of $1,035,500 be allocated among the performance obligations? (Do not round intermediote calculations. Round final answers to 0 decimal places, e.8. 5.275.) Equipment $ Installation

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