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Oriole Company acquired a patent on an oil extraction technique on January 1 , 2 0 2 5 for $ 3 8 7 9 0

Oriole Company acquired a patent on an oil extraction technique on January 1,2025 for $3879000. It was expected to have a 10-year life and no residual value. Oriole uses straight-line amortization for patents. On December 31,2026, the future cash flows expected from the patent were $652000 per year for the next eight years. The fair value of the patent is $2144000. At what amount should the patent be carried on the December 31,2026 balance sheet?

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