On January 1, 2011, Lumber Corp. (a Canadian company) purchased 80% of Martin Inc, an American company, for $50,000 US.

Martin's book values approximated its fair values on that date except for plant and equipment, which had a fair market value of $30,000 US. with a remaining life expectancy of 5 years. A goodwill impairment loss of $1,000 US. occurred during 2011. Martin's January 1, 2011 Balance Sheet is shown below (in US dollars):

\f