Errant Inc. purchased $\backslash (100\backslash \%\backslash )$ of the outstanding voting shares of Grub Inc. for $\backslash (\backslash$$ $200,000\backslash )$ on January $1,2019.$ On that date, Grub Inc. had common shares and retained earnings worth $\backslash (\backslash$$ $100,000\backslash )$ and $\backslash (\backslash$$ $60,000\backslash ),$ respectively. Goodwill is tested annually for impairment. The balance sheets of both companies, as well as Grub's fair market values on the date of acquisition are disclosed below:

The net incomes for Errant and Grub for the year ended December $31,2019,$ were $\backslash (\backslash$$ $160,000\backslash )$ and $\backslash (\backslash$$ $90,000\backslash )$ respectively. Grub paid $\backslash (\backslash$$ $9,000\backslash )$ in dividends to Errant during the year. There were no other inter$-$company transactions during the year. Moreover, an impairment test conducted on December $31,2019,$ revealed that the Goodwill should have a value of $\backslash (\backslash$$ $20,000\backslash ).$ Both companies use a FIFO system, and most of Grub's inventory on the date of acquisition was sold during the year. Errant did not declare any dividends during the year. Assume that any difference between the fair values and book values of the equipment, trademark and bonds payable would all be amortized over $10$ years.

Required

Assume that Errant Inc. uses the equity method unless stated otherwise. Calculate the amount of goodwill arising from this business combination is: