On June 1, Cline Co. paid $800,000 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 . . . . . . . . . . . . . . . . . . . . . . . . . .           $150,000
Accounts receivable . . . . . . . . . . . . . .             180,000
Capitalized software costs . . . . . . . . .             320,000
Goodwill . . . . . . . . . . . . . . . . . . . . . . .            100,000
Liabilities . . . . . . . . . . . . . . . . . . . . . .             (130,000)
Net assets . . . . . . . . . . . . . . . . . . . . . .             $620,000

On June 1, Renn’s accounts receivable had a fair value of $140,000. Additionally, Renn’s in process research and development was estimated to have a fair value of $200,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?

  a. $320,000
  b. $120,000
  c. $80,000
  d. $20,000