On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down payment of P100,000 and P250,000 four equal annual installments will be made every February 1, starting next February 1, 2021. The cash equivalent price of the machine is P950,000. The imputed discount rate is 6.83%. Diamond also incurred P30,000 in installation costs. How much should be capitalized as cost of the machine?

Group of answer choices

900,000

980,000

950,000

1,100,000