Halcomb Company's Balance Sheet on December 31, 2020, Was as Follows

Multiple Choice

Halcomb Company's balance sheet on December 31, 2020, was as follows: $$\begin{array}{l}\text { Assets }\\\begin{array} { l r } \text { Cash } & \$ 80,000 \\\text { Trade accounts receivable (net) } & 160,000 \\\text { Inventories } & 400,000 \\\text { Plant assets (net) } & \underline { 720,000 } \\\text { Total assets } & \$ 1,360,000 \\\text { Liabilities \& Stockholders' Equity } & \\\text { Current liabilities } & 240,000 \\\text { Long-term debt } & 400,000 \\\text { Common stock, \$1 par } & 80,000 \\\text { Additional paid-in capital } & 160,000 \\\text { Retained earnings } & \underline { 480,000 } \\\text { Total liabilities \& stockholders' equity } & \$ 1,360,000 \\\hline\end{array}\end{array}$$
On December 31, 2020, Ruth Corporation acquired all the outstanding common stock of Halcomb for $1,200,000. On that date, the current fair value of Halcomb's inventories was $360,000 and the current fair value of Halcomb's plant assets was $800,000. The current fair values of all other identifiable assets and liabilities of Halcomb were equal to their carrying amounts.
As a result of the acquisition of Halcomb by Ruth, the December 31, 2020, consolidated balance sheet of Ruth and subsidiary displays goodwill in the amount of:

A) $400,000
B) $440,000
C) $480,000
D) $520,000