On January 1, 2017, Dennis Company purchases Miles Company for $5 million in cash. Miles' financial statement dated December 31, 2016, indicates the firm's net assets have a book value of $3.8 million. An analysis conducted by Dennis on December 31 suggests that the book value of Miles' tangible assets is $600,000 lower than their fair value. This analysis also indicates that the fair value of Miles' identifiable intangible assets exceeds their book value by $320,000. Given these figures, what was the fair value of Miles' identifiable net assets?

• A
• :
• $4,720,000
• B
• :
• $4,400,000
• C
• :
• $3,800,000
• D
• :
• $0