Lawson Co. recently acquired all of Graham Inc.'s net assets in a business acquisition. The cash purchase price was $5,000,000. Graham's assets and liabilities had the following appraised values immediately prior to the acquisition: land, $1,000,000; buildings, $3,200,000; inventory, $2,000,000; long-term notes payable, for which Lawson Co. assumes payment responsibilities, $2,500,000. How much goodwill will result from this transaction?

A) $700,000.

B) $1,200,000.

C) $1,300,000.

D) $1,800,000.