DBC Ltd Recently Paid $4,000,000 for 60% of JKL Ltd's

Multiple Choice

DBC Ltd recently paid $4,000,000 for 60% of JKL Ltd's equity. JKL Ltd had total assets of $6,500,000 and liabilities of $1,300,000. What amount of goodwill on consolidation will DBC Ltd record?

A) $2,700,000
B) $880,000
C) $1,200,000.
D) $100,000.