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Sheridan Company purchases Sunland Company for $3850000 cash on January 1, 2021. The book value of Sunland Company's net assets reported on its December 31,

Sheridan Company purchases Sunland Company for $3850000 cash on January 1, 2021. The book value of Sunland Company's net assets reported on its December 31, 2020 financial statement was $3250000. An analysis indicated that the fair value of Sunland's tangible assets exceeded the book value by $530000, and the fair value of identifiable intangible assets exceeded book value by $285000. What amount of gain or goodwill is recognized by Sheridan?

$530000 goodwill. $215000 goodwill. $815000 gain. $215000 gain..

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