Please answer with detailed explanation

26 On 31/12/2008, M Co acquired 100% ownership of S Co. On that date, S reported assets and liabilities with book values of $300,000 and $100,000, respectively, common stock outstanding of $50,000, and retained earnings of $150,000. The book values and fair values of S assets and liabilities were same except land which had increased in value by $10,000 and inventories which had decreased by $5,000 Based on the preceding information, what amount of goodwill will be reported if the acquisition price was $240,000? Select one: a. 35,000 b. 40,000 C. O d. 15,000