Jones Company Acquired Jackson Company for $2,000,000 Cash

Multiple Choice

Jones Company acquired Jackson Company for $2,000,000 cash.At that time, the fair value of recorded assets and liabilities was $1,500,000 and $250,000, respectively.If Jackson meets specified sales targets, Jones is required to pay an additional $200,000 in cash per the acquisition agreement.Jones estimates the probability of this to be 50%.The direct costs related to the acquisition were $50,000.What was the amount of the goodwill related to the acquisition?​

A) ​$900,000
B) ​$950,000
C) ​$850,000
D) ​$750,000