Chicago Bank and Trust and First United Bank merge on January 1, 2014. Before the merger transaction, the balance sheets of the two companies are as follows:

(in millions) Chicago Bank & Trust First United Bank

Assets $2,950 $1,450

Liabilities$1,275$ 825

Common Stock ($1 par value)$ 150 $100

Additional paid-in capital $ 225 $125

Retained earnings$1,300 $400

Total Liabilities & equities $ 2,950 $1,450

Chicago Bank and Trust issues 75,000 shares of its common stock with a market value of $885 million to the owners of First United Bank in return for all of their shares of First United common stock. The assets of Frist United have a market value in excess of book value of $29 million.

The consolidated balance sheet of Chicago Bank and Trust at January 1, 2014 would report goodwill of:

a) $0 (no goodwill)

b) $260 million

c) $231 million

d) $400 million

e) none of the above