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answer was 38,720 but I don't get how, please show help with steps : On January 1, 2014, Brendan, Inc., reports net assets of $896,400

answer was 38,720 but I don't get how, please show help with steps :

On January 1, 2014, Brendan, Inc., reports net assets of $896,400 although equipment (with a four-year life) having a book value of $497,000 is worth $560,000 and an unrecorded patent is valued at $48,400. Hope Corporation pays $806,240 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 consolidated statements at December 31, 2015?

$38,720.

$43,560.

$30,976.

$34,848

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