VC Purchased a Machine for Use in Operations at a Quoted

VC purchased a machine for use in operations at a quoted price of $35,120. Full payment was cash of $8,000, plus a two-year non-interest-bearing note for $27,121. The market rate of interest for this note is 8 percent. VC should record the cost of the machine as (rounded to the nearest dollar) :

A) $23,250.
B) $31,250.
C) $32,950.
D) $35,120.