CZ Purchased a New Machine on June 1

question 79

Multiple Choice

CZ purchased a new machine on June 1. A $1,200 down payment was made. In addition, four monthly payments of $4,000 each are to be made starting July 1. The cash price would have been $14,400. Installation costs of $200 also were incurred. The amount capitalized as the cost of the machine is:

• A) $13,200.
• B) $13,400.
• C) $14,400.
• D) $14,600.