On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $2,017,000. At that time Sharp Company had common stock of $1,491,000 and retained earnings of $689,000. 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 $99,000 and a book value of $80,000. 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 $490,000 and the current yield rate on similar bonds is 7%.

Parent Share Non- Controlling Share Purchase Price and Implied Value $ 1962000 $ 49050C Less : Book Value of Equity Acquired 1774400 443600 Difference between Implied and Book Value 187600 46900 Land 16800 4200 Premium on Bonds Payable 33262 831 Balance 204062 51014 Goodwill