Beyonce, Inc. commenced operations at the beginning of the current year. A number of expenditures were debited to one account called Intangible Assets:

State incorporation fees and legal costs related to organizing the corporation: 100,000

Fire insurance premium for three-year period: 60,000

Purchase of a copyright: 200,000

Research and development costs: 400,000

Legal fees for filing a patent on a new product resulting from an R&D project: 50,000

Legal fees for successfully defending a patent developed from the project: 10,000

Initial franchise fee paid to a franchisor: 500,000

Advertising cost: 150,000

Consideration paid to purchase an entity/acquiree (with total assets of 6,000,000 and total liabilities of 2,200,000 at fair value): 5,000,000

How much is the correct amount that Beyonce, Inc. report as Intangible Assets?

A. 1,950,000

B. 1,960,000

C. 2,050,000

D. 2,350,000