BoTeck Is a Full-Service Technology Company

Multiple Choice

BoTeck is a full-service technology company. It provides equipment, installation services, and training services. Customers can purchase any product or service separately or as a bundled package. On May 3, Box-Rite Corporation purchased computer equipment, installation, and training for a total cost of $120,000. Estimated stand- alone fair values of the equipment, installation, and training are $75,000, $50,000, and $25,000 respectively. The transaction price allocated to equipment, installation and training is

A) $75,000, $50,000, and $25,000 respectively.
B) $60,000, $40,000 and $20,000 respectively.
C) $40,000, $40,000, and $40,000 respectively.
D) $120,000 for the entire bundle.