Use the Present Value tables found in Appendix E, of your textbook, to answer the following questions. Round each portion of your answer to the nearest dollar.

On January 1, 2021, Advance Auto purchased a machine and made a cash down payment of $2,400. The seller agreed to allow Advance Auto to pay for the balance of the machine over a 3-year period at 10% interest and with equal payments of $10,133 due at the end of 2021, 2022, and 2023. What amount should Advance Auto record the asset account, Machine, for on the day the contract was initiated? (Round to the nearest dollar.)

Select one:

a. $30,399

b. $27,599

c. $26,400

d. $25,199

e. $28,800