On January 1, 2021, Laramie Inc. acquired land for $8.0 million. Laramie paid $2.1 in cash and signed a 6% note requiring the company to pay the remaining $5.9 million plus interest on December 31, 2022. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should Laramie record the purchase of land?

• $8.6 million.

• $5.9 million.

• $7.4 million.

• $8.0 million.