Pecan Acquires Southern in an Acquisition Reported as a Merger

Pecan acquires Southern in an acquisition reported as a merger. The acquisition results in $50 million in goodwill. The acquisition cost includes an earnings contingency, valued at $1 million at the date of acquisition. Within the measurement period, additional information on Southern's expected future performance at the date of acquisition reveals that the earnout actually had a fair value of $200,000 at the date of acquisition.
The entry to record the new information includes a credit of $800,000 to:

A) Intangible assets
B) Goodwill
C) Gain on acquisition
D) Earnings contingency liability