In which of the following situations would Martinez Industries include goodwill in its balance sheet?

a. The fair market value of Martinez's net identifiable assets amounts to \(\$ 2,000,000\). Normal earnings for this industry are 15 percent of net identifiable assets. Net income for the past five years has averaged \(\$ 390,000\).

b. Martinez spent \(\$ 800,000\) during the current year for research and development for a new product that promises to generate substantial revenue for at least 10 years.

c. Martinez acquired Baxter Electronics at a price in excess of the fair market value of Baxter's net identifiable assets.

d. A buyer wishing to purchase Martinez's entire operation has offered a price in excess of the fair market value of the company's net identifiable assets.