ABC Company purchased a new printing machine on December 1 at an invoice price of P4,000,000 with terms 2/10, n/30. On December 15, Cabiao paid the required amount for the machine. The installation...

ABC Company purchased a new printing machine on December 1 at an invoice price of P4,000,000 with terms 2/10, n/30. On December 15, Cabiao paid the required amount for the machine.  The installation costs were P50,000 and the employees received training on how to use the machine, at a cost of P20,000.  Before using the machine to print customers’ orders, a test was undertaken and the paper and ink cost P5,000.  What amount should be capitalized as cost of the machine?

A. 3,995,000

B. 3,970,000

C. 3,975,000

D. 4,075,000