On the last day of the year Mihir installs new equipment in his factory. He plans to use the equipment for the next 10 years. The equipment costs $18,000, but Mihir gave them $5,000 in cash and signed a note to pay the rest over the next four years. He spent an extra $500 in cash to buy bolting equipment so he could secure the item to the floor and paid a worker an extra $50 to stay late and install the machinery. He also spent $1,000 to have the equipment express shipped since he wanted it in before going on vacation. He expects that he will have to spend $100 on oil each of the 10 years to keep the machine operating. Mihir worked late that night so that he could finish everything else on his desk before vacation as well. His dinner cost $20. 

How much should Mihir record on his balance sheet for this asset?

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