On January 31, 2014, Manning Company Acquired a New Machine

Multiple Choice

On January 31, 2014, Manning Company acquired a new machine by paying $40,000 cash and agreeing to pay $20,000 annually for four years, beginning on January 31, 2015. Assuming an interest rate of 10%, Manning should record the acquisition cost of the machine on January 31, 2014, at

A) $120,000
B) $109,737
C) $103,397
D) $102,092