On January 1, 2016, Harris Company acquired a patent on a particular oil extraction technique for $6.25 million. The patent was expected to have a 10-year life and no residual value. On December 31, 2017, Harris determined its expected future cash flows from the patent were $750,000 per year for each of the next eight years. The present value of these flows, discounted at Harris' market interest rate, is $3.5 million. Note that Harris uses straight-line amortization for patents. Given this information, the oil-extraction patent should be carried on the firm's December 31, 2017, balance sheet at an amount of

• A
• :
• $6 million.
• B
• :
• $3.5 million.
• C
• :
• $5 million.
• D
• :
• $6.25 million.