On October 1, Johnson Inc. purchased a new machine for $125,000. The company paid $2,500 to have the machine delivered to its shop and $2,000 to install the machine. In addition, Johnson paid $1,600 of interest to borrow money from the bank to purchase the machinery, and $3,000 to insure the machine for the first year of use. Johnson also paid $8,000 for improvements to the machine that are expected to enhance its efficiency. What amount will the company capitalize on its balance sheet for this machine asset?