On January 1, 2011, Jackie Corp. purchased 30% of the voting common stock of Rob Co., paying $2,000,000. Jackie properly accounts for this investment using the equity method. At the time of the investment, Rob's total stockholders' equity was $3,000,000. Jackie gathered the following information about Rob's assets and liabilities whose book values and fair values differed: Building(15 years life),book value:1,000,000. Fair value:1,500,000. Equipment(5 years life),book value:2,500,000. Fair value:3,000,000. Franchise(10 years life), book value:0. Fair value:500,000. Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Rob Co. reported net income of $300,000 for 2011, and paid dividends of $100,000 during that year. How much goodwill is associated with this investment?
A. $(500,000).
B. $0.
C. $650,000.
D. $1,000,000.
E. $2,000,000.