X Company Acquires All of Y Company's Assets and Liabilities

X Company acquires all of Y Company's assets and liabilities for $15,000,000 in cash. The fair values of Y's assets and liabilities approximate their book values, except Y has developed technology valued at $8,000,000 that is not reported on its balance sheet, and its buildings are overvalued by $7,000,000. Here is Y's balance sheet just prior to the acquisition:
$\begin{array}{lr}&\text { Y Company }\\\text { Current assets } & \$ 500,000 \\\text { Land, buildings, and equipment } & 9,500,000 \\\text { Total assets } & \$ 10,000,000\\\\\text { Liabilities } & \$ 6,000,000 \\\text { Common stock, } \$ 1 \text { par } & 100,000 \\\text { Additional paid-in capital } & 2,915,000 \\\text { Ret ained earnings } & 1,000,000 \\\text { Treasury stock } & \{20,000\} \\\text { Accumulated other comprehensive income } & 5,000 \\\text { Total liabilities and equity } & \$ 10,000,000 \end{array}$
How much goodwill is recognized for this acquisition?

A) $12,000,000
B) $ 4,000,000
C) $10,000,000
D) $16,000,000