On January 1, 2018, Parker Company acquired 25% of Prince Inc. common shares for the cash price of 750,000. It is determined that Parker has the ability to exert significant influence on Prince's financial and operating decisions. The following information concerning Prince's assets and liabilities on January 1, 2018 is provided: Current assets Book Value $750,000 Plant and equipment 2,600,000 $3,350,000 Liabilities Net assets 1,500,000 1,850,000 Fair Value $750,000 3,000,000 $3,750,000 1,500,000 $2,250,000 The plant and equipment are depreciated on a straight-line basis and have 10 years of remaining life. Prince reports net income for 2018 of 100,000 and pays dividends of 50,000. Calculate the Goodwill included in the purchase price. a) 187,500 b) 287,500 c) 400,000