Lopez Company acquires 100% of the stock of Santiago Corporation on January 1, 2016, for $2,280,000 cash. As of that date Santiago had the following account balances:

	Book Value		Fair value
Cash	$220,000		$220,000
Accounts receivable	360,000		360,000
Inventory	480,000		540,000
Building-net (10 year life)	900,000		720,000
Equipment-net (5 year life)	600,000		750,000
Land	540,000		780,000
Accounts Payable	240,000		240,000
Bonds Payable ($500,000 face value)	1,000,000	(Due 12/31/19)	1,020,000
Common stock	600,000
Additional paid-in capital	360,000
Retained earnings	900,000

In 2016 and 2017, Santiago had net income of $100,000 and 108,000, respectively. In addition, Santiago paid dividends of $27,000 in both years. Inventory is assumed to be sold in 2016. What is the amount of goodwill at date of acquisition?

Select one:

A. $170,000

B. $420,000

C. $180,000

D. $250,000