Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2018, for $4.8 million. The patent will be used for 5 years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $280,000 at the end of five years. Compute Granite's patent amortization for 2018, assuming the straight-line method is used.

Multiple Choice

• $904,000.

• $480,000.

• $452,000.