Brissac, a lessee, pays the lessor 120,000 a year, in arrears (at the end of each year), for the lease of a packaging machine and its maintenance. The stand-alone prices are 100,000 for the lease and 25,000 for the maintenance. Brissac separates the components. What annual amount does it allocate to the lease component?
- Annual consideration in the contract
- 120,000
- Stand-alone price of the lease
- 100,000
- Stand-alone price of the maintenance
- 25,000