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Prescott Company buys 70% of Sound Inc. on January 1, 2023. At the date of acquisition, it is determined that Sound has unrecorded patent with

Prescott Company buys 70% of Sound Inc. on January 1, 2023. 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, 2024, at what value is the patent reported?

a. $15,000

b. $14,000

c. $17,500

d. $12,500

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