Answer:
Equipment transaction price is $72,000
Installation transaction price $5,600
Training transaction price is $2,400
Explanation:
The transaction price of $80,000 should be allocated to the equipment,installation and training based on the individual stand-alone prices of each as calculated below:
Transaction price of an item=transaction price*item stand-alone price/total of stand-alone prices
transaction price is $80,000
total stand-alone prices=$90,000+$7000+$3000
=$100,000
Equipment transaction price=$80,000*$90,000/$100,000
=$72,000
Installation transaction price=$80,000*$7000/$100.000
=$5,600
Training transaction price=$80,000*$3000/$100,000
=$2,400
