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What the transaction price allocated to equipment

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Question - Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Sunland Corporation purchased computer equipment, installation and training for a total cost of $181440 on March 15, 2018. Estimated standalone fair values of the equipment, installation, and training are $99000, $67200, and $35400 respectively. What the transaction price allocated to equipment, installation and training?

A. $99000, $67200, $35400 respectively.

B. $60480, $60480, $60480 respectively.

C. $181440 for the entire bundle.

D. $89100, $60480, $31860 respectively.

Reference no: EM132975693

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