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On January 3 , 2 0 2 2 , Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for
On January Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for $ in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December fiscal yearends. At the acquisition date, Sea Cliff's stockholders' equity was $ including retained earnings of $
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:
tableAssetBook Value,Fair Value,tableRemainingUseful LifePatented technology,$$ yearsComputer software,$$ years
Sea Cliff's remaining identifiable assets and liabilities had acquisitiondate 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:
tableYearNet Income,Dividends$$
Assignment i
tableBalance Sheet,$$
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