In Which of the Following Situations Would Martinez Industries Include

In which of the following situations would Martinez Industries include goodwill in its balance sheet?

A) The fair market value of Martinez's net identifiable assets amounts to $2,000,000. Normal earnings for this industry is 15 percent of net identifi?able assets. Martinez's net income for the past five years has averaged $390,000.
B) Martinez spent $800,000 during the current year for research and development for a new product which promises to generate substantial revenue for at least 10 years.
C) Martinez acquired Baxter Electronics at a price in excess of the fair market value of Baxter's net identifiable assets.
D) A buyer wishing to purchase Martinez's entire operation has offered a price in excess of the fair market value of Martinez's net identifiable assets.