Carly Corporation Purchased a New Machine on October 31, 2007

Multiple Choice

Carly Corporation purchased a new machine on October 31, 2007.A $1,200 down payment was made and three monthly installments of $3,600 each are to be made beginning on November 30, 2007.The cash price would have been $11,600.Carly paid no installation charges under the monthly payment plan but a $200 installation charge would have been incurred with a cash purchase.The amount to be capitalized as the cost of the machine on October 31, 2007 would be

A) $12,200.
B) $12,000.
C) $11,800.
D) $11,600.