The question I had I already found the solution without any explanationhowever I have a question on it. Please see the attached

why is the purchase price on the solution/answer listed as $406000 and not $420000 since Parker Inc acquired it at $420000

Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyer's outstanding shares continue to trade at a collective value of $174,000. On the acquisition date, Sawyer has the following accounts: Book Value Fair Value Current assets $ 210,000 $ 210,000 Land 170,000 180,000 Buildings 300,000 330,000 Liabilities (280,000 ) (280,000 ) -------------------------------------------------------------------------------The buildings have a 10-year life. In addition, Sawyer holds a patent worth $140,000 that has a five year life but is not recorded on its financial records. At the end of the year, the two companies report the following balances: Parker Sawyer Revenues $ (900,000 ) $ (600,000 ) Expenses 600,000 400,000 -------------------------------------------------------------------------------Required: (a) Assume that the acquisition took place on January 1. Determine the controlling interest that would appear in a consolidated income statement for this year. (Omit the "$" sign in your response.) Controlling interest $ (b) Assume that the acquisition took place on April 1. Sawyer's revenues and expenses occurred uniformly through out the year. Determine the controlling interest that would appear in a consolidated income statement for this year. (Omit the "$" sign in your response.) Controlling interest $ Solution: a. Purchase Price ......................................................... Book value of net assets ($400,000 70%) ............................................ Purchase price in excess of book value .................................................... Excess purchase price assigned based on fair values: Patent ($140,000 70%) ................................. Land ($10,000 70%) ...................................... Buildings ($30,000 70%)............................... Total .................................................................... Consolidated figures: Combined revenues Combined expenses Noncontrolling interest in subsidiary income (200,000 .3) Consolidated net income b. Consolidated figures: Combined revenues (1) Combined expenses (2) Noncontrolling interest in subsidiary income (3) Consolidated net income $406,000 (280,000) $126,000 Annual Excess Life Amortizations 98,000 5 years 7,000 21,000 10 years -0- $19,600 2,100 $21,700 $1,500,000 (1,021,700) (60,000) $418,300 $1,350,000 (916,275) (45,000) $388,725