On January 1, 2009, Top Company spent a total of $4,384,000 to acquire control over Bottom Com¬ pany. This price was based on paying $424,000 for 20 percent of Bottom’s preferred stock and $3,960,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Bottom’s common stock was $400,000. The fair value of the 80 percent of Bottom’s preferred shares not owned by Top was $1,696,000. Bottom’s stock¬ holders’ equity accounts at January 1, 2009, were as follows: LO4 Preferred stock—9%, $100 par value, cumulative and participating;

10,000 shares outstanding.$1,000,000 Common stock—$50 par value; 40,000 shares outstanding. 2,000,000 Retained earnings.3,000,000 Total stockholders' equity.$6,000,000 Top believes that all of Bottom’s accounts are correctly valued within the company’s financial statements. What amount of consolidated goodwill should be recognized?

a. $300,000.

b. $316,000.

c. $364,000.

d. $480,000.