Problem $23-12($IAA$)$

At the beginning of current year, Allison Company purchased a new machine on a deferred payment basis. A down payment of $P1,000,000$ was made and four annual installments of P$1,500,000$ each are to be made every year$-$end. The cash price of the machine was $P5,800,000V$

Due to an employee strike, the entity could not install the machine immediately and thus incurred P$50,000$tof storage cost. Cost of installation excluding the storage cost amounted to P$100,000$

What initial amount should be capitalized as the cost of the machine?

a$.5,800,000$

b$.5,900,000$

c$.5,950,000$

d$.6,000,000$