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How should the transaction price be allocated

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Reference no: EM131810421

Fuhremann Co. is a full-service manufacturer of surveillance equipment. Customers can purchase any combination of equipment, installation services, and training as part of Fuhremann's security services.

Thus, each of these performance obligations are separate with individual standalone selling prices.

Laplante Inc. purchased cameras, installation, and training at a total price of $80,000.

Estimated standalone selling prices of the equipment, installation, and training are $90,000, $7,000, and $3,000, respectively.

How should the transaction price be allocated to the equipment, installation, and training?

Reference no: EM131810421

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