On January $3,2022,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, In exchange for $$6,163,000$ in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December $31$ fiscal year$-$ends. At the acquisition date, Sea Cliff's stockholders' equity was $$2,505,500$ Including retained earnings of $$1,705,500.$

Persoff pursued the acquisition, In part, to utilize Sea Cliff's technology and computer software. These items had fair values that differed from their values on Sea Cliff's books as follows:

$\backslash$table$[[$Asset$,$Book value,Fair value,$\backslash$table$[[$Remaining$],[$Useful Life$]]],[$Patented technology,$$142,500,$$$2,277,500,7$ years$],[$computer software,$$61,500,$$$1,381,500,12$ years$]]$

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

$\backslash$table$[[$Year$,$Net Income,Dividends$],[2022,$$$900,100,$$$150,000$