A company has the following expenditures during the year.

Advertising $ 500,000

Employee training 62,500

Customer outreach and consultation 437,500

The company believes that these efforts have increased the fair value of the entire company by $125,000. How much goodwill can the company recognize at the end of the year associated with these expenditures?

Multiple Choice

• $0.

• $62,500.

• $1,000,000.

• $125,000.