Fact Pattern:Suwannee Company issued 20,000additional shares of its common stock for $1.6million. Suwannee Companys equity sections immediately before and immediately after this issuance are presented below:

BeforeAfterCommon stock, $10 par$1,000,000$1,200,000Additional paid-in capital2,500,0003,900,000Retained earnings3,900,0003,900,000Total equity$7,400,000$9,000,000

Question

Assume that Suwannee Company issued the 20,000 additional shares to Palatka Corporation, whose ownership interest in Suwannee increased to 100,000 shares. If the carrying amount of the acquired net assets of Suwannee is equal to their fair value at the time the additional shares are issued, the goodwill indicated in the acquisition of the additional shares equals

A.$0

B.$20,000

C.$320,000

D.$1,580,000