When a company's balance sheet shows goodwill for \(\$ 300,000\), what does that mean?

a. The company has developed a strong reputation valued at \(\$ 300,000\) if the company were to be sold.

b. The company is worth \(\$ 300,000\) more than the balance sheet indicates.

c. The company purchased another company and paid \(\$ 300,000\) more than the fair market value of the company's net assets.

d. The company has invested \(\$ 300,000\) in new equipment during the period.