Storm Corporation Purchased a New Machine on October 31, 2014

Storm Corporation purchased a new machine on October 31, 2014. A $2,400 down payment was made and three monthly installments of $7,200 each are to be made beginning on November 30, 2014. The cash price would have been $23,200. Storm paid no installation charges under the monthly payment plan but a $400 installation charge would have been incurred with a cash purchase. The amount to be capitalized as the cost of the machine on October 31, 2014 would be

A) $24,400.
B) $24,000.
C) $23,600.
D) $23,200.