Downtown Services leases several computer servers from Smith Computing Company. The lease agreement includes consulting and training updates. The standalone prices charged by Smith for each separate component are $$800,000$ for the servers and $$200,000$ for the consulting and training. The lease is for $5$ years with fixed payments of $$320,000$ per year. There are also variable payments required amounting to $$8,000$ per year on average based on the metered usage of the servers. There is no minimum charge included in the contract.

Requirement

Assuming that Downtown allocates consideration based on relative standalone selling prices, determine the allocation of the total consideration to the computer servers and the consulting and training updates.

Begin by selecting the contract component for each element. Then, complete the table to determine the allocation of the total consideration to the computer servers and the consulting.

$\backslash$table$[[$Contract Element,$\backslash$table$[[$Contract$],[$Component$]],\backslash$table$[[$Standalone$],[$Selling$],[$Prices$]],$Percentage,$\backslash$table$[[$Allocation of$],[$Total Contract$],[$Consideration$]],\backslash$table$[[$Allocation of$],[$Annual$],[$Lease$],[$Payment$]]],[\backslash$table$[[$Server $($Computer$],[$Equipment$)]],,,\%,,],[\backslash$table$[[$Consulting and$],[$Training Services$]],,,\%,,],[$Totals$,,,=100\%,,]]$