Plume Co. acquired all of the outstanding voting stock of Sumir Co. for $6million. The identifiable net assets of Sumir were appropriately measured at an acquisition-date fair value of $7.5million. Moreover, the business combination was completed in the period in which it was initiated, and no contingent consideration or preacquisition contingency existed. Below are Sumirs only assets. They are measured at acquisition-date fair values.

Financial assets (not accountedfor by the equity method)$3millionDeferred tax assets.5 millionAssets to be disposed of by sale3millionOther current assets2millionProperty, plant, and equipment1million

The consolidated income statement for the period in which the combination was completed must reflect

A.An extraordinary gain of $500,000.

B.A gain of $1.5 million.

C.Goodwill of $150,000.

D.No gain or goodwill.