Rand Corporation acquires all of Southern Company's assets and liabilities on January 1, 2014, for $20,000,000 in cash. At the date of acquisition, Southern's balance sheet reported assets of $65,000,000 and liabilities of $52,000,000. Investigation reveals that Southern's reported plant assets are overvalued by $1,600,000. Rand reports how much goodwill on this acquisition? (Points : 8)

$5,400,000.

$7,000,000.

$8,600,000.

$11,400,000.

None of the above.

(please explain why and I will rate 5 stars!)