Harrel uses straight-line amortization for patents. On December 31, 2011, the expected future cash flows expected from the patent were expected to be $600,000 per year for the next eight years. The present value of these cash flows, discounted at Harrel"s market interest rate, is $2,800,000. At what amount should the patent be carried on the December 31, 2011 balance sheet?
A. $5,000,000
b. $4,800,000
c. $4,000,000
d. $2,800,000