Reed acquires $100$ percent of the outstanding voting shares of Watson Company on January $1,20$X$1.$ To obtain these shares, Reed pays $$600,000$ cash and issues $20,000$ shares of $$1$ par value common stock on this date. Reed$$s stock had a fair value of $$15$ per share. At date of acquisition, the book values and fair values of Watson's net assets amounted to $$675,000$ and $$780,000,$ respectively.