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Question - Coronado Industries purchased a new machine on October 31, 2020. A $5000 down payment was made and three monthly installments of $770 each are to be made beginning on November 30, 2020. The cash price would have been $46500. Coronado paid no installation charges under the monthly payment plan but an $770 installation charge would have been incurred with a cash purchase. Find the amount to be capitalized as the cost of the machine on October 31, 2020?
a. $55800.
b. $48040.
c. $46500.
d. $47270.
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