On July 1, 2021, Pancho Villa Enterprises (PVE) acquired equipment. PVE paid $172,500 in cash on July 1, 2021, and signed a $690,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 7% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1) (Use appropriate factor(s) from the tables provided.) For what amount will PVE record the purchase of equipment?

• a-$862,500.

• b-$809,742.

• c-$717,360.

• d-$817,360.