Sandhill Manufacturing Company acquired a patent on a manufacturing process on January 1, 2020 for $4800000. It was expected to have a 10 year life and no residual value. Sandhill uses straight-line amortization for patents. On December 31, 2021, the future cash flows expected from the patent were $360000 per year for the next eight years. The present value of these cash flows, discounted at Sandhills market interest rate, is $2080000. At what amount should the patent be carried on the December 31, 2021 balance sheet?

$4800000.

$2080000.

$2880000.

$3840000.