On August 1, 2020, Sunland Company purchased a new machine on a deferred payment basis. A down payment of $4200 was made and 4 annual installments of $25200 each are to be made beginning on September 1, 2020. The cash equivalent price of the machine was $88500. Due to an employee strike, Sunland could not install the machine immediately, and thus incurred $1350 of storage costs. Costs of installation (excluding the storage costs) amounted to $2850. The amount to be capitalized as the cost of the machine is

$91350.

$92700.

$101100.

$88500.