sonat communications contracted to set up a call center for the city of birmingham. under the terms of the contract, sonat communications will design and set-up a call center with the following costs: design of call center $20,000 computers, servers, telephone equipment $550,000 software $170,000 installation and testing of equipment $30,000 selling commission $50,000 annual service contract $100,000 in addition, sonat communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $180,000. ownership of equipment installed remains with the city of birnmingham. the contract costs that should be capitalized is
