Berry Co. purchases a patent on January 1, 2021, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the carrying value of the patent on December 31, 2022?

Select one:

A.

$21,000.

B.

$33,000.

C.

$26,000.

D.

$24,000.