On January 1, 2013, Jackie Corp Any Excess of Cost Over Fair Value Was Attributed to Voting

On January 1, 2013, 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: $\begin{array}{lrr}&\text { Book Value }&\text { Fair Value }\\\text { Buildings (20-year life) } & \$ 1,000,000 & \$ 1,500,000 \\\text { Equipment (5-year life) } & 2,500,000 & 3,000,000 \\\text { Franchises (10-year life) } & 0 & 500,000\end{array}$ 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 2013, 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.