Prescott Company buys 70% of Sound Inc. on January 1, 2018. At the date of acquisition, it is determined that Sound has unrecorded patent with fair value of $20,000, an estimated life of 8 years and straight-line amortization. On the consolidated balance sheet at December 31, 2019, at what value is the patent reported?

a. $17,500

b. $16,500

c. $18,250

d. $15,000