Figure:
on January 3, 2011, Austin Corp For All Other Assets and Liabilities, Book Value and Fair

Figure:
On January 3, 2011, Austin Corp. purchased 25% of the voting common stock of Gainsville Co., paying $2,500,000. Austin decided to use the equity method to account for this investment. At the time of the investment, Gainsville's total stockholders' equity was $8,000,000. Austin gathered the following information about Gainsville's assets and liabilities: $\begin{array}{lrrr}&\text { Book Value }&\text { Fair Value }\\\text { Buildings (10-year life) } & \$ 400,000 & \$ 500,000 \\\text { Equipment (5 -year life) } & 1,000,000 & 1,300,000 \\\text { Franchises ( } 8 \text { - year life) } & 0 & 400,000\end{array}$ For all other assets and liabilities, book value and fair value were equal. Any excess of cost over fair value was attributed to goodwill, which has not been impaired.
-For 2011, what is the total amount of excess amortization for Austin's 25% investment in Gainsville?

A) $27,500.
B) $20,000.
C) $30,000.
D) $120,000.
E) $70,000.