On March 1, 2013 ABC Company sold a machine to XYZ Company. XYZ made a cash down payment of $4,000 and signed a 90-day non-interest bearing note of $8,000 discounted at 10%. Determine the cost to be allocated to the machine.

Group of answer choices

$7,800

$11,800

$12,200

$11,200

$12,000