Foot and Shoe organize a partnership and agree both will begin with equal capital balances. Foot contributes fixed assets with a fair value of $80,000. Shoe contributes inventory with a fair value of $20,000 and his expertise. It is decided that they will use the goodwill method to account for the partners capital. How much is the total goodwill to be recorded by the partnership.

a. 0

b. $20,000

c. $40,000

d. $60,000

e. $100,000