On January $1,2013,$ Point Corporation acquired an $80\%$ interest in Sharp Company for $$1,960,000.$ At that time Sharp Company had

common stock of $$1,488,000$ and retained earnings of $$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 $$101,000$ and a book value of $$82,000.$ 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 $$494,000$ and the current yield rate on similar bonds is $9\%.$

$($a$)$

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$.1\mathrm{.}25136$ and final answers to $0$ decimal places, e$.$g$.5,125.)$

On January $1,2013,$ Point Corporation acquired an $80\%$ interest in Sharp Company for $$1,960,000.$ At that time Sharp Company had

common stock of $$1,488,000$ and retained earnings of $$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 $$101,000$ and a book value of $$82,000.$ 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 $$494,000$ and the current yield rate on similar bonds is $9\%.$

$($a$)$

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$.1\mathrm{.}25136$ and final answers to $0$ decimal places, e$.$g$.5,125.)$