The following balances were taken from the records of Blossom Company:

Common stock $(1/1/2021$ and $12/31/2021)$ $$723,900$

Retained earnings $1/1/2021$ $$164,100$

Net income for $2021184,400$

Dividends declared in $2021(42,900)$

Retained earnings, $12/31/21305,600$

Total stockholders' equity on $12/31/21$ $$1,029,500$

Splish company purchased $75\%$ of Blossom Company's common stock on January $1,2021$ for $$902,700.$ The difference between implied value and book value is attributable to assets with a remaining useful life on January $1,2021$ of ten years.

$($a$)$ Compute the difference between cost$/($implied$)$ and book value applying:

$1.$ Parent company theory.

$2.$ Economic unit theory.

Difference

$1.$ Parent company theory $

$2.$ Economic unit theory $