On August 1, 2007, Tanner Corporation Purchased a New Machine

On August 1, 2007, Tanner Corporation purchased a new machine on a deferred payment basis.A down payment of $2,000 was made and 4 annual installments of $6,000 each are to be made beginning on September 1, 2007.The cash equivalent price of the machine was $23,000.Due to an employee strike, Tanner could not install the machine immediately, and thus incurred $300 of storage costs.Costs of installation (excluding the storage costs) amounted to $800.The amount to be capitalized as the cost of the machine is

A) $23,000.
B) $23,800.
C) $24,100.
D) $26,000.