At the beginning of this year, Fair-weather Corp. incurred $200,000 of research costs and $100,000 of development costs to create a new patent. The patent is expected to have a useful life of 40 years with no salvage value. Calculate the carrying value of the patent at the end of this year, assuming Fair-weather follows U.S. GAAP.

A.$0.

B.$97,500.

C.$292,500.