On January 3, 2016, Persoff Corporation acquired all of cash. Persoff elected to exercise control over Sea Ciff 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 $2,500,000 including retained earnings of $1,700,000 the outstanding voting stock of Sea Cliff, Inc. in exchange for $6,000,000 in Persoff pursued the acquistion, 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: Remaining Asset Book ValueFaiz ValueUseful Life s 140,000$2, 240,000 7 years Patented technology Computer software 60,0001,260, 00012 Sea Ciff's remaining identifiable assets and liabilities had acquisition-date book values that closely approximated fair values. Since acquisition, no assets have been impaired During the next three years, Sea Clff reported the following income and dividends: Net Income Dividends 2016 900,000$ 150,000 150,000 150,000 940,000 975,000 2017 2018