On June 1, Cline Co. paid $1,012,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renns assets and liabilities on June 1 follow:

Cash		$	197,000
Accounts receivable			247,000
Capitalized software costs			391,000
Goodwill			135,000
Liabilities			(228,000	)
Net assets		$	742,000

On June 1, Renns accounts receivable had a fair value of $202,000. Additionally, Renns inprocess research and development was estimated to have a fair value of $290,000. All other items were stated at their fair values. On Clines June 1 consolidated balance sheet, how much is reported for goodwill?

$115,000. $160,000.

$391,000.

$20,000