Question: On August 1, 2007, Jarret Corporation purchased new equipment on a deferred payment basis. A down payment of $1,500 was made & 4 monthly installment of $2,000 each are to be made beginning on September 1, 2007. The cash equivalent rate of the equipment was $8,000. Jarret incurred and paid installation costs amounting to $250. The amount to be capitalized as the cost of the equipment is;
[A] $9,500
[B] $9,750
[C] $8,000
[D] $8,250