Posit Company has a financial relationship with Sparkle Inc., a separate legal entity, but does not own any of Sparkle's voting stock. On January 1, 2020, Posit determines that Sparkle is a variable interest entity and that Posit is Sparkle's prime beneficiary. Sparkle's shareholders' equity on January 1, 2020 is as follows:

Capital stock	$3,000
Retained deficit	(500)
Total	$2,500

Sparkle's net assets are reported at values approximating fair value, but it has previously unreported identifiable intangible assets valued at $7,000. The fair value of Sparkle at January 1, 2020 is $16,000. Assume Posit and Sparkle were already under common control. On a January 1, 2020 consolidated balance sheet, goodwill is reported at:

	A.	$16,000
	B.	$10,000
	C.	$13,500
	D.	$0