Hospital Equipment Company (HEC) acquired several fMRI machinesfor its inventory at a cost of $3,600 per machine. HEC usuallysells these machines to hospitals at a price of $6,960. HEC alsoseparately sells 12 months of training and repair services for fMRImachines for $1,740. HEC is paid $6,960 cash on November 30 for thesale of an fMRI machine delivered on December 1. HEC sold themachine at its regular price, but included one year of freetraining and repair service. Required: For the machine sold at itsregular price, but with one year of “free” training and repairservice, determine the dollar amount of revenue earned from theequipment sale versus the revenue earned from the training andrepair services.
