On December 31, Bar Company purchased all the outstanding common stock of Sim Company by borrowing $8,000,000. Sim's net assets on December 31 were on the books with a net value of $7,000,000. Fair market values equalled book value for all net assets with the expectation of property, plant, and equipment, which had a fair value that exceeded its carrying amount by $1,100,000.

Explain how Bar Company should treat the concept of goodwill for the December 31st purchase on their year end December 31st financial statements.