3. On January 1, 2009, Batangas Company purchased a patent from the inventor, who asked P110,000 for it. Batangas paid for the patent as follows: cash, P40,000; issuance of 1,000 shares of its own ordinary shares, par P10 (market value, P20 per share); and a note payable due at the end of three years, face amount, P50,000, noninterest-bearing. The current interest rate for this type of financing is 12 percent. Batangas Company should record the cost of the patent at a. P110,000 C. P95,590 b. P 98,800 d. P85,590