On June 1, Cline Co. paid $1,030,000 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	$	242,000
Accounts receivable		228,000
Capitalized software costs		370,000
Goodwill		166,000
Liabilities		(209,000	)
Net assets	$	797,000

On June 1, Renns accounts receivable had a fair value of $161,000. Additionally, Renns in-process research and development was estimated to have a fair value of $250,000. All other items were stated at their fair values. On Clines June 1 consolidated balance sheet, how much is reported for goodwill?

• $370,000.

• $216,000.

• $17,000.

• $149,000.

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