helpp

Ivanhoe Company acquired a patent on an oil extraction technique on January 1, 2020 for $7000000. It was expected to have a 10 year life and no residual value. Ivanhoe uses straight- line amortization for patents. On December 31, 2021, the future cash flows expected from the patent were $750000 per year for the next eight years. The present value of these cash flows, discounted at Ivanhoe's market interest rate, is $3950000. At what amount should the patent be carried on the December 31, 2021 balance sheet? $3950000 $6000000 $7000000 $5600000