December $31,2021,$ financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were paid in the same period.Chapter $3$

On January $3,2019,$ Alto Corporation acquired all of the outstanding voting stock of Bajo Corporation, in exchange for $$7,304,000$ in cash. At the acquisition date, Bajo's stockholders' equity was $$2,544,000$ including retained earnings of $$1,744,000.$

Alto pursued the acquisition, in part, to utilize Bajo's technology and computer software. These items had fair values that differed from their values on Bajos's books as follows:

$\backslash$table$[[$Asset$,,,$Remaining$],[$Patented technology,$$160,000,$$$2,540,000,7,$years$],[$Computer software,$$72,000,$$$2,232,000,12$ years$]]$

Bajo's remaining identifiable assets and liabilities had acquisition$-$date book values that closely approximated fair values. Since acquisition, no assets have been impaired. During the next three years, Bajo reported the following income and dividends:

$\backslash$table$[[,\backslash$table$[[$Net$],[$Income$]],$Dividends$],[2019,$$$900,800,$$$150,000],[2020,940,800,$$$150,000],[2021,975,800,$$$150,000]]$December $31,2021,$ financial statements for each company follow. Parentheses indicate credit

balances. Dividends declared were paid in the same period.

Required:

Prepare all necessary consolidation entries and enter them in the debit and credit columns of

the consolidation worksheet provided, to determine the consolidated values to be reported

on Alto's financial statements.

Required:

Prepare all necessary consolidation entries and enter them in the debit and credit columns of the consolidation worksheet provided, to determine the consolidated values to be reported on Alto's financial statements.

On January $3,2022,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for $$8,934,000$ in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December $31$ fiscal year$-$ends. At the acquisition date, Sea Cliff$$s stockholders$$ equity was $$2,599,000$ including retained earnings of $$1,799,000.$