On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,000,000 immediately and then another $1,000,000 on September 30, 2020. An interest rate of 8% reflects the time value of money for this type of loan agreement.

Corso should record the acquisition of the patent on September 30, 2018, for what amount?

Multiple Choice

$2,000,000.

$1,912,385.

$1,857,340.

$1,714,678.