On January $1,2022,$ Pronto Company acquired $80$ percent of Speedy Inc.$$s voting stock for $$9,875,000.$ The fair value of the $20$ percent noncontrolling interest was $$2,125,000.$ Speedy$$s net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets:

$$ Developed technology, fair value $$1,000,000,5-$year life

$$ Favorable leases, fair value $$500,000,4-$year life

Speedy$$s shareholders$$ equity on January $1,2022,$ was $$5,000,000.$ It is now December $31,2023($two years later$).$ Speedy reported net income of $$400,000$ in $2022.$ There are no impairments of identifiable intangibles or goodwill in $2022$ or $2023.$ Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy$$s December $31,2023,$ trial balance appears below.

Dr $($Cr$)$

Current assets $$10,000,000$

Property and equipment, net $25,000,000$

Liabilities $(29,000,000)$

Capital stock $(1,000,000)$

Retained earnings, January $1(4,400,000)$

Sales revenue $(35,000,000)$

Cost of goods sold $30,000,000$

Operating expenses $4,400,000$

$$0$

On the December $31,2023,$ consolidated balance sheet, developed technology is reported at

Select one:

a$.$ $$1,000,000$

b$.$ $$600,000$

c$.$ $$800,000$

d$.$ $$480,000$