Which of the Following Best Describes the Proper Treatment of Cash

Multiple Choice

Which of the following best describes the proper treatment of cash discounts on acquired machinery?

A) The historical cost of the machinery should be the invoice price;the discount should be ignored.
B) The historical cost of the machinery should be the net-of-discount amount,regardless of whether the discount is actually taken.
C) The historical cost of the machinery should be the net-of-discount amount only if the discount is actually taken.
D) The historical cost of the machinery should be the invoice price plus the amount of the discount which is treated a interest capitalized on the purchase.