Punk Corporation purchased $80$ percent of Soul Corporation$$s stock on January $1,20$X$2.$ At that date, Soul reported retained earnings of $$80,000$ and had $$120,000$ of stock outstanding. The fair value of its buildings was $$32,000$ more than the book value.

Punk paid $$190,000$ to acquire the Soul shares. At that date, the noncontrolling interest had a fair value of $$47,500.$ The remaining economic life for all Soul$$s depreciable assets was eight years on the date of combination. The amount of the differential assigned to goodwill is not impaired. Soul reported net income of $$40,000$ in $20$X$2$ and declared no dividends.