The balance sheet of Man Company on January 31, 2020, showed net assets of $740,000. On that date, Man merged with San Corporation in a business combination in which San issued 35,000 shares of its $1 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The current fair values of Mans assets and liabilities were equal to their carrying amounts. San paid direct out-of-pocket costs of the business combination, $40,000, and costs of registering and issuing its common stock, $70,000.The amount of goodwill is:

a.

$70,000.

b.

$0.

c.

$40,000.

d.

$30,000.