NEED HELP WITH INCORRECT IN RED - PREMIUM ON BONDS PAYABLE

On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $2,001,000. At that time Sharp Company had common stock of $1,521,000 and retained earnings of $695,000. The book values of Sharp Companys 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%.

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.

Parent Share Non- Controlling Share Entire Value Purchase Price and Implied Value 2,001,000 500,250 2,501,250 Less I. Book Value of Equity Acquired A 1,772,800 443,200 2,216,000 TDifference between Implied and Book Value 228,200 57,050 285,250 T Land A 13,600 3,400 17,000 Premium on Bonds Payable 22727 5682 28409 7 Balance 264,527 66132 330,659 T Goodwill 264,527 66132 330,659 T Balance