Reckful Inc. pays $3,500,000 to purchase Swiss Corp. The following information regarding Swiss Corp. is available at the time of purchase:

The book value of Swiss's identifiable net assets is $4,000,000

The fair value of Swisss identifiable net assets is $4,200,000

In Reckfuls entry to record the purchase of Swiss Corp., which of the following statements is true?

A) Goodwill of $700,000 should be recorded.

B) Goodwill of $500,000 should be recorded.

C) Goodwill of $200,000 should be recorded.

D) A gain of $500,000 should be recorded.

E) A loss of $500,000 should be recorded.

F) A gain of $700,000 should be recorded.

G) A loss of $700,000 should be recorded.