On January 1, 20A, Goldstein Company Purchased a Machine

Multiple Choice

On January 1, 20A, Goldstein Company purchased a machine. The seller agreed that a total of $9,000 would be paid over a three-year period--$3,000 per year at the end of 20A, 20B, and 20C. At the time the machine was purchased, the market rate of interest was 10%. What amount should be debited to the asset account, Machinery, on the date of purchase (round to the nearest dollar) ?

A) $9,000
B) $7,461
C) $9,016
D) $9,948