The balance sheet of Seattle Company, along with market values of its assets and liabilities, is as follows:

	Seattle Company
	book value dr (cr)	market value dr (cr)
Current assets	$ 2,000,000	$ 1,500,000
Plant & equipment (net)	30,000,000	35,000,000
Patents	100,000	2,000,000
Completed technology	0	10,000,000
Broader customer base	0	16,000,000
Licensing agreements	0	4,000,000
Goodwill	200,000	700,000
Liabilities	(28,000,000)	(30,000,000)
Common stock, $10 par	(1,000,000)
Additional paid-in capital	(5,000,000)
Retained earnings	1,700,000

Assume Portland Company pays $10,000,000 in cash to acquire the assets and liabilities of Seattle Company. Portland records a gain on acquisition of

		zero
		$12,500,000
		$28,500,000
		$29,200,000
		None of the above