Bavarian Purity Corporation Purchased Equipment for $32,000

Bavarian Purity Corporation purchased equipment for $32,000. Bavarian Purity also paid $400 forfreight and insurance while the equipment was in transit. Sales tax amounted to $240. Insurance, taxes, and maintenance the first year of use cost $1,000. How much should Bavarian Purity
Corporation capitalize as the cost of the equipment?

A) $32,000
B) $32,640
C) $32,400
D) $31,640