On January 1, 20X7, Panther Company acquired 100 percent of Sable Company for $675,000. On that date Sable reported common stock of $350,000 and retained earnings of $300,000. The fair value of Sable's building was determined to be $20,000 over book value, and it was determined that the book value of Sable's inventory was overvalued by $5,000. What amount of the differential will be applied to goodwill?

A)	$25,000
B)	$10,000
C)	$5,000
D)	$0