Rusty Corporation Purchased a Rust-Inhibiting Machine by Paying $50,000 Cash

Multiple Choice

Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date.Rusty's incremental borrowing rate is 8%.At what amount would the machine be reported at on the balance sheet as of the purchase date?

A) $123,255
B) $130,000
C) $80,000
D) $73,255