On June 1, Cline Co. paid $1,071,500 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on June 1 follow: Cash Accounts receivable Capitalized software costs Goodwill Liabilities $ 168,000 298,500 376,000 193,000 (196,000) $ 839,500 Net assets On June 1, Renn's accounts receivable had a fair value of $209,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $249,000. All other items were stated at their fair values. On Cline's June 1 consolidated balance sheet, how much is reported for goodwill? Jubilee, Inc., owns 40 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $108,500 and then sells it to JPW for $155,000. At the end of the year, JPW still holds only $22,300 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment using the equity method