On April 1, 2013, Archer Corporation purchased a new machine on a deferred payment basis....
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On April 1, 2013, Archer Corporation purchased a new machine on a deferred payment basis. A down payment of $6,000 was made and six monthly installments of $4,000 each are to be made beginning on May 1, 2013. The cash equivalent price of the machine was $28,000. Archer incurred and paid installation costs amounting to $500. The amount to be capitalized as the cost of the machine is
| a. | $28,000 |
| b. | $22,600 |
| c. | $28,500 |
| d. | $24,600 |
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