The next three questions are based on the following information: On 1/1/X, Palm Company acquired 90,000 shares (90% interest) in Soso Company for $6 per share. At the time, Soso's equity included $200,000 of Capital Stock and $300,000 of Retained Earnings. An Appraisal of Soso's assets provided the following information:

Account Fair Value Book Value

Equipment (10 years) 100,00090,000

Inventory 90,00085,000

Patent (10 years) 20,000-

Land 70,00050,000

How much Goodwill will be reported on theConsolidated Balance Sheeton 12/31/X1?

a.$0

b.$40,500

c.$45,000

d.None of the Above