Rand Corporation Acquires Southern Company's Assets and Liabilities for $20,000,000

Rand Corporation acquires Southern Company's assets and liabilities for $20,000,000 in cash. At the date of acquisition, Southern's balance sheet reported assets of $75,000,000 and liabilities of $65,000,000. Investigation reveals that Southern's reported plant assets are overvalued by $1,400,000. Rand reports how much goodwill on this acquisition?

A) $10,000,000
B) $11,400,000
C) $ 8,600,000
D) $ 7,000,000