Blue Sky Companys 12/31/08 balance sheet reports assets of $5,000,000 and liabilities of $2,000,000. All of Blue Skys assets book values approximate their fair value, except for land, which has a fair value that is $100,000 greater than its book value. On 12/31/08, Aaron Corporation paid $5,300,000 to acquire Blue Sky. What amount of goodwill should Aaron record as a result of this purchase?

Select one:

a.

$400,000

b.

$300,000

c.

$1,800,000

d.

$2,300,000

e.

$2,200,000