Anchor Company purchased a manufacturing machine with a list price of $85,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $2,200. Anchor paid $3,000 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $3,800 for the first year of operations. What is the cost of the machine?

$88,500

$85,500

$92,300

$83,300