Ivanhoe Company purchases Miles Company for $3700000 cash on January 1, 2018. The book value of Miles Company's net assets reported on its December 31, 2017 financial statement was $3100000. An analysis indicated that the fair value of Miles's tangible assets exceeded the book value by $500000, and the fair value of identifiable intangible assets exceeded book value by $270000. What amount of gain or goodwill is recognized by Ivanhoe?

$770000 gain.

$500000 goodwill.

$170000 gain.

$170000 goodwill.