Paro Company Purchased 80% of the Voting Common Stock of Sabon

Multiple Choice

Paro Company purchased 80% of the voting common stock of Sabon Company for $900,000.There are no liabilities.The following book and fair values are available for Sabon:
$\begin{array}{lrr}& \text { Book Value } & \text { Fair Value } \\\text { Current assets } & \$ 100,000 & \$ 200,000 \\\text { Land and building } & 200,000 & 200,000 \\\text { Machinery } & 300,000 & 600,000 \\\text { Goodwill } & 100,000 & ? \end{array}$

The machinery will appear on the consolidated balance sheet at ____.

A) $600,000
B) $540,000
C) $480,000
D) $300,000