6. Positive Company purchased a 90% interest in Safety Company as of January 2, 2013. Positive gave 75,000 shares of its $5 par value stock, which had a current market value of $10 per share. At the date of acquisition, Safety Companys equity accounts were:

Capital stock (11,000 shares) $300,000

Other contributed capital 100,000

Retained earnings 250,000

Treasury stock (1,000 shares) ( 30,000)

Total equity $620,000

Any difference between value implied by the purchase price and book value is attributable to Safetys land.

A. Calculate the difference between implied and book value

B. Prepare the entry to eliminate Positives investment in Safety

C. Allocate the difference between implied and book value