In $2016,$ Gates Industries purchased William Industries for $$1$ billion. The book value of William Industries at the time was $$200$ million. Where should the excess amount of $$800,000$ that Gates is paying be recorded in the financial statements?

Tangible asset $$ excess value of company purchased

Intangible asset $$ goodwill

Tangible asset $$ patents and copyrights

Intangible asset $$ excess value of company purchased