On September 30, 2024, a company acquired a patent. The agreement specified that the company will pay $1,050,000 immediately and then another $1,050,000 on September 30, 2026. An interest rate of 11% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1)

The company should record the acquisition of the patent on September 30, 2024, for what amount?

Multiple Choice

$1,957,246

$1,902,201

$1,759,539

Incorrect

$2,044,861

Why is it this answer?