On June 1, Cline Co. paid $954,500 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 $ 171,000 Accounts receivable 274,500 Capitalized software costs 307,000 Goodwill 148,000 Liabilities (156,000 ) Net assets $ 744,500 On June 1, Renns accounts receivable had a fair value of $213,000. Additionally, Renns in-process research and development was estimated to have a fair value of $241,000. All other items were stated at their fair values. On Clines June 1 consolidated balance sheet, how much is reported for goodwill?

a. $31,000.

b. $307,000.

c. $117,000.

d. $178,500.