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3.On August 1, 2006, Bamco Company purchased a new machine on a deferred payment basis. A down payment of P100,000 was made and 4 montly installments of P250,000 each are to be made beginning on September 1, 2006. The cash equivalent price of the machine was P950,000. Bamco incurred and paid installation costs amounting to P30,000. The amount to be capitalized as the cost of the machine is a. 950,000 b. 980,000 c. 1,100,000 d. 1,130,000