Diamond, Inc. acquired a machine that involved the following expenditures and related factors: Gross invoice price ...................................................................... $55,000 Sales tax ............................................................................................ 3,500 Cash discount taken ........................................................................ 6,000 Freight ............................................................................................... 1,700 Assembly and installation of machine .......................................... 1,500 Repair of machine damage caused during installation .............. 3,000 Assorted spare parts for future use .............................................. 2,300

The initial accounting cost of the machine should be:

Select one:

a. $67,300

b. $58,000

c. $55,700

d. $71,300