On January 1, 20X1, Tie Company Purchased a Machine That

Multiple Choice

On January 1, 20X1, Tie Company purchased a machine that had a sticker (list) price of $22,000. The seller agreed to allow Tie Company to pay for the machine over a three-year period at 10% interest on the unpaid balance and with equal payments of $8,444 due at the end of 20X1, 20X2, and 20X3. What is the amount that should be debited to the asset account, Machinery, on the day the contract was initiated is (rounded to the nearest dollar) ?

A) $20,999
B) $22,000
C) $25,332
D) $27,865