Storm Corporation purchased a new machine on October 31, 2014. A $2,400 downpayment was made and three monthly installments of $7,200 each are to be madebeginning on November 30, 2014. The cash price would have been $23,200. Storm paid noinstallation charges under the monthly payment plan but a $400 installation charge wouldhave been incurred with a cash purchase.

The amount to be capitalized as the cost of themachine on October 31, 2014 would be:

a.$24,400.

b.$24,000.

c.$23,600.

d.$23,200.