On January $2,2021,$ Barley Corp. purchased $40\%$ of the voting common stock of Wheat Co$.,$ paying $$3,000,000.$ Barley properly accounts for this investment using the equity method. At the time of the investment, Wheat's total stockholders' equity was $$5,000,000.$ Barley gathered the following information about Wheat's assets and liabilities whose book values and fair values differed:

Book ValueFair ValueBuildings $(20-$year life$)$$$1,000,000$$$1,800,000$Equipment $(5-$year life$)1,500,0002,000,000$Franchises $(10-$year life$)0700,000$

Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Wheat Co$.$ reported net income of $$400,000$ for $2021,$ and paid dividends of $$200,000$ during that year.

What is the amount of the excess of purchase price over book value?

Question $12$ options:

$$(2,000,000).$

$$800,000.$

$$1,000,000.$

$$2,000,000.$

$$3,000,000.$