On August 1, 2010, Volmar Corporation Purchased a New Machine

On August 1, 2010, Volmar Corporation purchased a new machine on a deferred payment basis.A down payment of $4,000 was made and four annual instalments of $6,000 each are to be made beginning on September 1, 2010.The cash equivalent price of the machine was $25,000.Due to an employee strike, Volmar 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) $25,000.
B) $25,800.
C) $26,100.
D) $28,000.