Question: How do I solve this problem, I can't seem to figure it out? On January 1, 2013, Point Corporation acquired an 80% interest in Sharp

How do I solve this problem, I can't seem to figure it out?

How do I solve this problem, I can't seem to figure it

On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $2,022,000. At that time Sharp Company had common stock of $1,476,000 and retained earnings of $710,000. The book values of Sharp Company's assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $98,000 and a book value of $81,000. The outstanding bonds were issued at par value on January 1, 2008, pay 11% annually, and mature on January 1, 2018. The bond principal is $503,000 and the current yield rate on similar bonds is 9%. V (a) / Your answer is partially correct. Try again. Prepare a Computation and Allocation Schedule for the difference between book value and the value implied by the purchase price in the consolidated statements workpaper on the acquisition date. (Round present value factor calculations to 5 decimal places, e.g. 1.25136 and nal answers to 0 decimal places, e.g. 5,125.) 2,022,000 505,500 2,527,500 0 1,557,000 311400 1,557,000 455,000 194,100 970,500 Land 6 -13,600 -3,400 -17,000 Premium on Bonds Payable 9 14873 3718 18591 Balance # 466273 194,418 819,091 , , Balance 6 0 0 0

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