Goodwill Calculation under Acquisition Method

A company, Alpha Corp., acquired 80% of the outstanding shares of Beta Inc. on January 1, 2023, for $6 million, which is above the fair value of Beta's net identifiable assets. At the time of acquisition, Beta had total assets valued at $7 million and total liabilities of $4 million. The fair value of Beta's net identifiable assets is determined to be $3 million.

According to the Acquisition Method of accounting for business combinations, what amount will Alpha Corp. recognize as goodwill at the acquisition date?