On January 1, 2013, Point Corporation acquired an 80 interest in Sharp Company for $2,022,000 At that time Sharp Company had common stock of $1,476,000 and retained earnings of $710,000 The book values of Sharp Companys assets and liabilities were equal to their fair values except for land and bonds payable The land had a fair value of $98,000 and a book value of $81,000 The outstanding bonds were issued at par value on January 1, 2008, pay 11 annually, and mature on January 1, 2018 The bond principal is $503,000 and the current yield rate on similar bonds is 9 (a) Your answer is partially correct Try again 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 Parent Share Non Controlling Share Entire Value Purchase Price and Implied Value 2022000 505500 2527500 Less Book Value of Equity Acquired 1748800 437200 T 2186000 1 Difference between Implied and Book Value 273200 68300 341500 2 Land 13600 3400T 17000 Premium on Bonds Payable Balance TGoodwill Balance

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On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $2,022,000. At that time Sharp Company had common stock of $1,476,000

On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $2,022,000. At that time Sharp Company had common stock of $1,476,000 and retained earnings of $710,000. The book values of Sharp Companys assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $98,000 and a book value of $81,000. The outstanding bonds were issued at par value on January 1, 2008, pay 11% annually, and mature on January 1, 2018. The bond principal is $503,000 and the current yield rate on similar bonds is 9%.

(a)


	Your answer is partially correct. Try again.

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.

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Parent Share Non- Controlling Share Entire Value Purchase Price and Implied Value 2022000 505500 2527500 Less . Book Value of Equity Acquired 1748800 437200 T 2186000 1 Difference between Implied and Book Value 273200 68300 341500 2 Land 13600 3400T 17000 Premium on Bonds Payable Balance TGoodwill Balance