1. On January 1, 20X1, Tech Entity acquired a patent for $1,000,000 with half the purchase price payable immediately and the other half payable in one year. Assume the patent meets all criteria for recognition as an intangible asset. An appropriate discount rate is 5% per year. At what amount should the patent be recorded on the books of Tech Entity?

a. $1,000,000

b. $500,000

c. $952,381

d. $976,190

e. None of the above