On January $3,2022,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, In exchange for $$6,326,000$ in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidlary with an Independent accounting system. Both companles have December $31$ fiscal year$-$ends. At the acquisition date, Sea Cliff's stockholders' equity was $$2,511,000$ Including retained earnings of $$1,711,000.$ a$.$ Determine the falr value in excess of book value for Persoff's acquisition date Investment in Sea Cliff.

b$.$ Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December $31,2024.$

c$.$ Determine Persoff's December $31,2024,$ Investment in Sea Cliff's balance.

d$.$ Prepare a worksheet to determine the consolidated values to be reported on Persoff's financlal statements.

Answer is not complete.

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Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December $31,2024.$ Answer is not complete.

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Required $B$

Required $C$

Determine Persoff's December $31,2024,$ Investment in Sea Cliff's balance.

Persoff pursued the acquisition, In part, to utllize Sea Cliff's technology and computer software. These Items had falr values that differed from thelr values on Sea Cliff's books as follows:

$\backslash$table$[[$Asset$,$Book Value,Fair Value,$\backslash$table$[[$Remaining$],[$Useful Life$]]],[$Patented technology,$$145,800,$$$2,315,000,7$ years$],[$computer software,$$63,800,$$$1,503,800,12$ years$]]$

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

$\backslash$table$[[$Year$,$Net Income,Dividends$],[2022,$$$900,200,$$$150,000],[2023,940,200,150,000],[2024,975,200,150,000]]$

December $31,2024,$ financlal statements for each company follow. Parentheses indicate credit balances. Dividends declared were pald in the same perlod.

$\backslash$table$[[$Items$,$Persoff,Sea Cliff$],[$Income statement$],[$Revenues$,$$$(2,740,000),$$$(2,260,000)],[$Cost of goods sold,$1,359,800,873,800],[$Depreciation expense,$280,000,384,000],[$Amortization expense,$376,000,27,000],[$Equity earnings in Sea Cliff,$(545,200),\backslash$theta $],[$Net income,$$(1,269,400),$$$(975,200)],[$statement of Retained Earnings,,$],[$Retained earnings $1/1,$$$(7,480,000),$$$(3,251,400)],[$Net income $($above$),(1,269,400),(975,200)],[$Dividends declared,$600,000,150,000],[$Retained earnings $12/31,$$$(8,149,400),$$$(4,876,600)],[$Balance Sheet,,$],[$current assets,$$499,000,$$$380,000],[$Investment in sea cliff,$7,401,600,0],[$Computer software,$310,000,48,000],[$Patented technology,$812,000,84,000],[$Goodwill$,104,000,0],[$Equipment$,1,842,000,4,520,000],[$Total assets,$$18,968,600,$$$5,032,000],[$Liabilities$,$$$(819,200),$$$(155,400)],[$common stock,$(2,000,000),(800,000)],[$Retained earnings $12/31,(8,149,400),(4,876,600)],[$Total liabilities and,$$(10,968,600),$$$(5,032,000)]]$