On January 1, 2013, DB purchased a used cement truck from NC. The carrying value of the truck on NC's books was $12,500. DB paid cash of $2,000 and gave a 2-year note that required semi-annual payments of $4,000 each payable at the end of each semi-annual period (the market rate of interest was 12 percent per year). A similar truck reportedly was sold recently for $14,000.

DB Company should record the cost of the truck as (rounded to the nearest dollar):

(Present value of ordinary annuity of $1 at 6% for 4 periods = 3.46511; present value of ordinary annuity of $1 at 6% for 2 periods = 1.83339; present value of ordinary annuity of $1 @12% for 2 periods = 1.69005, and for 4 periods = 3.03735)

		A. $14,000
		B. $15,860
		C. $16,080
		D. $17,000