Exercise 5-9 On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,962,000. At that time Sharp Company had common stock of $1,530,000 and retained earnings of $688,000. The book values of Sharp Company's assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $102,000 and a book value of $81,000. The outstanding bonds were issued at par value on January 1, 2008, pay 9% annually, and mature on January 1, 2018. The bond principal is $507,000 and the current yield rate on similar bonds is 7%. Prepare a Computation and Allocation Schedule for the difference between book value and the value implied by the purchase price in the consolidated statements workpaper on the acquisition date. (Round present value factor calculations to 5 decimal places, e.g. 1.25136 and final answers to o decimal places, e.g. 5,125.) Parent Share Non- Controlling Share Entire Value Purchase Price and Implied Value 962000 490,500 2,452,500 Less Book Value of Equity Acquired 1774400 443,600 2,218,000 Difference between Implied and Book Value 187,600 1 46,900 234,500 Land (16,800) (4,200) (21,000) Premium on Bonds Payable 33,261 8,315 41,576 Balance 204,061 51,015 255,076 Goodwill 1 204,061 51,015 255,076 Balance v (b) Your answer is partially correct. Try again. Prepare the workpaper entries necessary on December 31, 2013, to allocate and depreciate the difference between book value and the value implied by the purchase price. (Round answers to o decimal places, e.g. 5,125. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Common Stock 1,530,000 Retained Earnings 688,000 Difference between Implied and Book Value 243,500 Noncontrolling Interest 490,500 Investment in Subsidiary 1,962,000