On January $3,2022,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for

$$6,652,000$ 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 $$2,522,000$

including retained earnings of $$1,722,000.$

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:

Sea Cliff'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, Sea Cliff reported the following income and dividends:

December $31,2024,$ financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were

paid in the same period.