Pandy Corporation $(aU.S.$ corporation$)$ acquired all $of$ the stock $of$ Sandy Company $(a$

Brazilian company$)on$ January $1,2014$ for $$9,300,000$ when Sandy had $10,000,000$ Brazilian

real $(BR)$ capital stock and $5,000,000BR$ retained earnings. The book value $of$ Sandy's net

assets equaled the fair value $on$ this date, and any $cos\frac{t}{b}$ook value differential $is$ due $toa$

patent with $a5-$year remaining useful life. Sandy's functional currency $is$ the $BR.$ Sandy's

books are maintained $in$ the functional currency. The exchange rates for $BR\text{'}s$ for $2014$ are

shown below:

January $1,2014,$$$0\mathrm{.}60$

Average for $2014,$$$0\mathrm{.}64$

December $31,2014$$$0\mathrm{.}68$

What $is$ the patent value from the business combination $on$ January $1,2014inU.S.$ dollars.

Answer: