Libby Company purchased equipment by paying $5,300 cash on the purchase date and agreeing to pay $5,300 every six months during the next four years. The first payment is due six months after the purchase date. Libby's incremental borrowing rate is 8%. The equipment reported on the balance sheet as of the purchase date is closest to:

A) 42,400

B) 40,984

C) 47,700

D) 35, 684