On August 1, 2020, Burkina Corp. purchases a new machine. The company makes a $2,000 cash down payment, and agrees to pay four annual instalments of $3,000 each, starting August 1, 2021, signing a non-interest bearing-note to this effect. The cash equivalent price of the machine is $12,500. Due to an employee strike, Burkina could not install the machine immediately, and thus incurred $300 of storage costs. As well, Burkina pays installation costs of $400. The recorded cost of the machine should be

$12,500.

$13,200.

$12,900.

$14,000.