On August 1, 2015, Tanner Corporation purchased a new machine on a deferred payment basis. A down payment of $2,000 was made and 4 annual installments of $6,000 each are to be made beginning on September 1, 2015. The cash equivalent price of the machine was $23,000. Due to an employee strike, Tanner could not install the machine immediately, and thus incurred $300 of storage costs. Costs of installation (excluding the storage costs) amounted to $800. The amount to be capitalized as the cost of the machine is

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$23,000.

$23,800.

$24,100.

$26,000.