Java Company purchased an entity for P6,000,000 cash at the beginning of the current year. The carrying amount and fair value of the assets of the acquired entity as of the date of the acquisition are as follows:

	Carrying amount	Fair value
Cash	50,000	50,000
Accounts receivable	500,000	500,000
Inventory	1,000,000	1,500,000
Patent	0	250,000
Property, plant and equipment	2,000,000	3,000,000

In addition, the acquired entity had liabilities totaling P2,000,000 at the time of acquisition. The acquired entity has no other separately identifiable intangible assets. What is the goodwill arising from the acquisition?

	a.	700,000
	b.	2,450,000
	c.	4,450,000
	d.	2,700,000