On January 1, 2013, Harrison Corporation spent $2,600,000 to acquire control over Involved, Inc. This price was based on paying $750,000 for 30 percent of Involved's preferred stock, and $1,850,000 for 80 percent of its outstanding common stock. As of the date of the acquisition, Involved's stockholders' equity accounts were as follows:

Common stock $10 par value, 100,000 shares outstanding	$1,000,000
Preferred stock, 7% fully participating, $100 par value,
10,000 shares outstanding	1,000,000
Retained Earnings	2,000,000
Total stockholders' equity	$4,000,000

Assuming Involved's accounts are correctly valued within the company's financial statements, what amount of goodwill should be recognized for the Investment in Involved?

$0.

$812,500.

$(100,000.)

$200,000.

$2,112,500.