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A firm buys equipment from a manufacturer. The manufacturer also has a financing division that will finance the firm's purchase. The terms of the sale

A firm buys equipment from a manufacturer. The manufacturer also has a financing division that will finance the firm's purchase. The terms of the sale require the firm to pay the manufacturer for the equipment in one year. The amount to be paid is $220, which includes $20 of interest. What is the total amount capitalized into the PP&E account?

a. $220

b. $20

c. $200

d. None of the listed answers

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