On January 1,2009, Brendan, Inc., reports net assets of $760,000 although equipment (with a four- year life) having a book value of $440,000 is worth $500,000 and an unrecorded patent is valued at $45,000. Hope Corporation pays $692,000 on that date for an 80 percent ownership in Brendan. If the patent is to be written off over a 10-year period, at what amount should it be reported on con¬ solidated statements at December 31,2010?

 LO6

a. $28,800.

b. $32,400.

c. $36,000.

d. $40,500.