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Blossom Company manufactures products ranging from simple automated machinery to complex systems containing numerous

components. Unit selling prices range from $$200,000$ to $$1,500,000$ and are quoted inclusive of installation. The installation process

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. Blossom has the following arrangement with Bridgeport Inc.

Bridgeport purchases equipment from Blossom for a price of $$980,400$ and contracts with Blossom to install the equipment.

Blossom charges the same price for the equipment irrespective of whether it does the installation or not. Using market data,

Blossom determines installation service is estimated to have a standalone selling price of $$51,600.$ The cost of the equipment

is $$580,000.$

Bridgeport is obligated to pay Blossom the $$980,400$ upon the delivery of the equipment.

Blossom 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.

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