Albers Company acquires an 80% interest in Barker Company on January 1, 2011, for $850,000. The following determination and distribution of excess schedule is prepared at the time of purchase:

Albers uses the simple equity method for its investment in Barker. As of December 31, 2015, Barker has earned $200,000 since it was purchased by Albers. Barker pays no dividends during 2011€“2015.
On December 31, 2015, the following values are available:
Fair value of Barker€™s identifiable net assets (100%) ........... $ 900,000
Estimated fair value of Barker Company (net of liabilities)......... 1,000,000
Determine if goodwill is impaired. If not, explain your reasoning. If so, calculate the loss on impairment.

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Determination and Distribution of Excess Schedule Company Implied Fair Value Parent Price 80 NCI Value (20 $212,500 Fair value of subsidiary Less book value of interest acquired $1, $850,000 ..$600,000 $600,000 $480,000 $600,000 Total equity. Interest acquired 80% )0% Book value Excess offair value over book value $120,000 $92,500 462,500 $370,000 Adjustment of identifiable accounts: Amortization Adjustment per Year Life Ke Buildings Goodwill $200,000 10,000 debit D1 debit D2 20 262,500 462,500 Total...