Danika Manufacturing purchased a patent from Clayton Industries on January 1, 2015, by paying $10,500 in cash and issuing a $35,000 noninterest-bearing note payable. The note called for six annual payments of $5,000 starting on December 31, 2015. The patent had a remaining legal life of 14 years. Danika expected that the patent would have a useful life of 15 years. Danika borrowing rate was 6%. Danika uses the straight-line method to amortize intangibles.

In 2019, Danika unsuccessfully sued a competitor for patent infringement. The company paid legal fees of $5,000 on June 30, 2019. What was the carrying value of the Patent at December 31, 2019? Assume no impairment adjustment is required. Group of answer choices

A) $22,556

B) $29,250

C) $28,987

D) $22,293