Company A acquires Company B for $1.0 million. Company K has assets with a FMV of $0.8 million and liabilities with FVM of $600,000. Assume there are no identifiable intangible assets. If the acquiring company uses the purchase method to account for the transaction, it will recognize goodwill of:

A). $200,000

B). $600,000

C). $800,000

D). $500,000

E). $400,000