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 the table below. 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 First 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

Select one:

a. $0 (no goodwill)

b. $260 million

c. $231 million

d. $400 million

e. None of the above