Pop Corporation acquired 80% of Soda Companys common stock for $32,800 on January 1, 2017. The reported equity of Soda on January 1, 2017 was $3,000 in common stock and $7,000 in retained earnings. The fair value of the noncontrolling interest was $8,200. Sodas assets and liabilities were reported at fair value at the date of acquisition, except for these items:

	Book Value	Fair Value
Land	$2,000	$8,000
Buildings (Accumulated Depreciation was $200)	8,000	1,000
Identifiable intangibles	0	7,000

The buildings had a remaining useful life of 7 years, and the identifiable intangibles are amortized over 5 years as of the date of acquisition, both straight-line. Goodwill was impaired by $2,000 in 2017 and is unimpaired in 2018. The land, buildings, and identifiable intangibles are still held by Soda.

It is now December 31, 2018 (two years since the acquisition took place). The trial balances of Pop and Soda are in the consolidation working paper below. Soda reported net income of $3,100 and dividends of $400 during 2018. Information on intercompany transactions is as follows:

1. On January 2, 2017, Pop sold Soda equipment for a price of $800. The equipment had a book value of $300 (cost of 400 less accumulated depreciation of $100) at the time of sale, and a remaining life of 5 years, straight-line.

2. Soda sells merchandise to Pop on a continuing basis, at a markup of 20% on cost. Pops 2018 beginning inventory contains $90 in goods purchased from Soda (cost was $75). Pops 2018 ending inventory contains $120 in goods purchased from Soda (cost was $100). Total intercompany sales for 2018 were $3,000.

Pop uses the complete (full) equity method of accounting.

Required

1. Calculate the total goodwill arising from this acquisition.
2. Prepare a schedule roll forwarding the excess of fair value over book value items.