Sunland Company acquired a patent on an oil extraction technique on January 1, 2017 for $7200000. It was expected to have a 10 year life and no residual value. Sunland uses straight-line amortization for patents. On December 31, 2018, the future cash flows expected from the patent were $810000 per year for the next 8 years. The present value of these cash flows, discounted at Sunlands market interest rate, is $4050000. At what amount should the patent be carried on the December 31, 2018 balance sheet?

A) $5760000.

B)

$6480000.

C)

$7200000.

D) $4050000.