Buddy Limited acquired 75% of the Share capital and Reserves of Gear Limited for $20,000. Share capital was $10,000 and Reserves amounted to $7,000. All assets and liabilities were recorded at fair value except plant which was recorded at $1,200 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by the group. The amount of goodwill acquired by Buddy Limited in this business combination was:

$6,350.

$6,620.

$13,380.

$2,160.