ABC Corporation has recently acquired XYZ Inc. The acquisition was structured such that ABC Corporation obtained control over XYZ Inc. on the acquisition date, and the fair value of the identifiable net assets of XYZ Inc. was determined to be $5 million. The total acquisition cost that ABC Corporation incurred to acquire XYZ Inc. was $6 million. In the context of the acquisition method of accounting for business combinations, which of the following statements regarding the identifiable net assets and goodwill recognized on the balance sheet of ABC Corporation is correct?