During the Year 20x1, Pike Inc. acquired 100% of Ship Inc. by issuing 250,000 shares of its common stock. The acquisition was announced on March 31, 20x1, when Pike's common stock was selling for $45 per share, and finalized on October 15, 20x1, when the market price of Pike's common stock was $50 per share. On October 15, 20x1, Ship's net assets had a book value of $10,750,000. Book value equaled fair value for all recognized assets and liabilities, except land, which had a fair value $500,000 higher than book value. Ship also had unpatented technology with a fair value of $225,000 and in-process research and development with a fair value of $365,000. Which is the goodwill to be reported on Pike Inc.'s December 31, 20x1, balance sheet under U.S. GAAP?(Points : 4)

$500,000 $660,000 $1,250,000 $1,750,000