Driggs Co. purchased a computer system on January 1, 2014 for $870,000, paying $150,000 down and agreeing to pay the balance in 6 equal annual installments of $120,000 payable and the end of each year beginning December 31, 2014. An assumed interest rate of 10.5% is implicit in the purchase price.

What is the amount capitalized to Computer System account on January 1, 2014?