Batigra, a lessee, pays 135,000 a year, at the end of each year, for a mobile crane, a flatbed truck and their maintenance, under a single contract. Batigra can benefit from each vehicle on its own, and neither is highly dependent on, or highly interrelated with, the other. Stand-alone prices: crane 90,000, truck 45,000, maintenance 15,000. Batigra separates the components. Compute the annual consideration allocated to each of the two lease components.
- Annual consideration in the contract
- 135,000
- Stand-alone price of the crane
- 90,000
- Stand-alone price of the truck
- 45,000
- Stand-alone price of the maintenance
- 15,000