On January 3, 2016, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc. in exchange for $9,423,000 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 Cliffs stockholders equity was $2,615,500 including retained earnings of $1,815,500.

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

Asset	Book Value		Fair Value		Remaining Useful Life
Patented technology	$	192,500	$	3,027,500	7 years
Computer software		91,500		3,811,500	12 years

Sea Cliffs 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:

	Net Income		Dividends
2016	$	902,100	$	150,000
2017		942,100		150,000
2018		977,100		150,000

December 31, 2018, financial statements for each company appear below. Parentheses indicate credit balances. Dividends declared were paid in the same period.

	Persoff				Sea Cliff
Income Statement
Revenues	$	(2,930,000	)		$	(2,355,000	)
Cost of goods sold		1,452,900				909,900
Depreciation expense		327,500				422,000
Amortization expense		433,000				46,000
Equity earnings in Sea Cliff		(262,100	)			0
Net income	$	(978,700	)		$	(977,100	)
Statement of Retained Earnings
Retained earnings 1/1	$	(7,575,000	)		$	(3,359,700	)
Net income (above)		(978,700	)			(977,100	)
Dividends declared		600,000				150,000
Retained earnings 12/31	$	(7,953,700	)		$	(4,186,800	)
Balance Sheet
Current assets	$	584,500			$	427,500
Investment in Sea Cliff		9,649,300				0
Computer software		405,000				76,500
Patented technology		926,000				122,000
Goodwill		142,000				0
Equipment		1,908,500				4,710,000
Total assets	$	13,615,300			$	5,336,000
Liabilities	$	(3,661,600	)		$	(349,200	)
Common stock		(2,000,000	)			(800,000	)
Retained earnings 12/31		(7,953,700	)			(4,186,800	)
Total liabilities and equity	$	(13,615,300	)		$	(5,336,000	)

Note: Parentheses indicate a credit balance.

Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2018.

Equity earnings in Sea Cliff