On June 30, 2014, PC Company purchased all of the common stock of Silicon Company by issuing 100,000 shares of its $1 par value common stock, with a market value of $25/share. PC Company incurred $400,000 in registration and issuing costs, and $250,000 in consulting and legal fees, paid in cash. The book value of Silicon Company at the date of acquisition was $1,000,000, consisting of capital stock of $560,000, retained earnings of $280,000 (credit balance), treasury stock of $35,000, and accumulated other comprehensive income of $195,000 (credit balance). The carrying values of Silicon’s reported assets and liabilities approximate fair value, but it has $700,000 in customer lists, not reported on its balance sheet. The acquisition results in:

A. Goodwill in the amount of $800,000

B. A bargain in the amount of $1,500,000

C. Goodwill in the amount of $1,500,000

D. Goodwill in the amount of $1,200,000

E. Neither a bargain nor goodwill results from the acquisition