What is the total revenue recognized on the sale of equipment and related services?

To determine the total revenue recognized on the sale of equipment and related services, one must consider all the income generated from this transaction. The answer of $2,000,000 suggests that this figure includes not only the sale price of the equipment but also any additional revenue stemming from related services.

In financial accounting, total revenue encompasses all the inflows of resources that result from the sale of goods or services. When equipment is sold, the sale price is often recorded as revenue. If there are additional services tied to the equipment—such as installation, maintenance, or warranties—that generate further income, those amounts would also contribute to the total revenue recognized.

In this scenario, if $2,000,000 is the total recognized, it indicates that after considering equipment and any supplementary services offered during the transaction, this figure reflects the comprehensive revenue figure in accordance with relevant accounting standards. This understanding is fundamental when analyzing how transactions are recorded and revenue is recognized.