Alexander paid $148,000 to acquire 100% of Willis Corporation in a statutory merger. Alexander also agreed to pay the shareholders of Willis $0.80 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first year following acquisition. Alexander projects that there is a 10% (45%, 25%, 20%) probability that the income from continuing operations for the year is $65,000 ($75,000, $85,000, $95,000 respectively). Alexander uses a discount rate of 8%.

Information for Willis Corporation immediately before the merger was as follows:

	Book Value	Fair Value
Current Assets	$40,000	$50,000
Plant Assets	$120,000	$70,000
Liabilities	$50,000	$45,000

Previously unreported items identified as belonging to Willis:

	Fair Value
Contracts under negotiation with potential customers	$15,000
Customer contracts for consulting projects	$7,000
In-process research and development	$8,000
Skilled workforce	$23,000
Recent favorable press reports on Willis	$2,000
Proprietary databases	$12,000

Determine the goodwill to be reported in this acquisition.