Portland Company Paid $20,000,000 in Cash for Seattle Company's Assets

Portland Company paid $20,000,000 in cash for Seattle Company's assets and liabilities, recording a bargain gain of $1,500,000. Three months later, it is determined that Seattle's acquisition-date liabilities, related to pending lawsuits, were actually $3,000,000 lower as of the date of acquisition. The entry to record this information includes:

A) A credit to gain on acquisition of $3,000,000
B) A credit to liabilities of $3,000,000
C) A debit to goodwill of $3,000,000
D) A credit to goodwill of $3,000,000