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

Common stock $(1/1/20$ and $12/31/20)$ $$724,100$

Retained earnings $1/1/20$ $$162,700$

Net income for $2023183,500$

Dividends declared in $2023(43,800)$

Retained earnings, $12/31/20302,400$

Total stockholders' equity on $12/31/20$ $$1,026,500$

Windsor Company purchased $75\%$ of Sheridan Company's common stock on January $1,2021$ for $$901,200.$ The difference between implied value and book value is attributable to assets with a remaining useful life on January $1,2023$ 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 $