Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $4.6 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $110,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used.

Multiple Choice

• $920,000.

• $460,000.

• $449,000.

• $898,000.