Pier 5 has been in business 8 years with 4 stores in the San Francisco bay area. Their local reputation for making savory pies such as curried potatoes well recognized. A national food distributor has offered to purchase the company. Pier 5 has $0.9 million of net assets at book value, but those net assets have a fair market value of $1.2 million. If the distributor offers to buy Pier 5 for $3.5 million, how much will be recorded as goodwill based on the offered purchase price