On August 1, 2017, Mendez Corporation purchased a new machine on a deferred payment basis. A down payment of $4,000 was made and 4 annual installments of $24,000 each are to be made beginning on September 1, 2017. The cash equivalent price of the machine was $92,000. Due to an employee strike, Mendez could not install the machine immediately, and thus incurred $1,200 of storage costs. Costs of installation (excluding the storage costs) amounted to $3,200. The amount to be capitalized as the cost of the machine is

		$92,000.
		$95,200.
		$96,400.
		$104,000.