Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $131,920. Non-controlling interest was valued at $49,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $57,000 and retained earnings of $37,000. Fair values were equal to carrying amounts for all the net assets except the following: Inventory Equipment Software Carrying Amount $37,000 46,400 Fair Value $ 22,500 72,500 18,500 The equipment had an estimated remaining useful life of six years on January 1, Year 3, and the software was to be amortized over ten years. Foxx uses the cost method to account for its investment. The testing for impairment at December 31, Year 6, yielded the following fair values: Software Goodwill $ 9,400 55,105 The impairment loss on these assets occurred entirely in Year 6. Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parent's share of the goodwill noted above is $37,673. The following are the financial statements of Foxx Corp. and its subsidiary Rabb Ltd. for Year 6: