At December $31,2023,$ Sheridan Corp.$\text{'}$s general ledger includes the following account balances:

Copyrights

$$59000$

Deposits with advertising agency $($will be used to promote goodwill$)$

$36500$

Research costs

$72000$

Excess of cost over fair value of identifiable net assets of acquired subsidiary

$587500$

Trademarks

$102500$

In the preparation of Sheridan's balance sheet as of December $31,2023,$ what should be reported as goodwill?

$$161500$

$$587500$

$$624000$

$$785500$