ABC Company purchases DEF Company for $4,200,000 cash on January 1, 2021. The book value of DEF Company's net assets reported on its December 31, 2020 financial statement was $3,600,000. An analysis indicated that the fair value of DEF's tangible assets exceeded the book value by $600,000, and the fair value of identifiable intangible assets exceeded book value by $320,000. What amount of gain or goodwill is recognized by ABC?

1. $920,000 gain.

2. $600,000 goodwill.

3. $320,000 gain

4. $320,000 goodwill.