Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2016 for $4.7 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 $210,000 at the end of five years. Compute Granite's patent amortization for 2016, assuming the straight-line method is used Granite's patent amortization for 2016, assuming the straight-line method is used.

$470,000.

$898,000.

$449,000.

$940,000.