On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $8,608,000 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 $2,588,000 including retained earnings of $1,788,000.

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	$	180,000	$	2,840,000	7 years
Computer software	$	84,000	$	3,204,000	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
2019	$	901,600	$	150,000
2020		941,600		150,000
2021		976,600		150,000

December 31, 2021, financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were paid in the same period.

	Persoff				Sea Cliff
Income Statement
Revenues	$	(2,880,000	)		$	(2,330,000	)
Cost of goods sold		1,428,400				900,400
Depreciation expense		315,000				412,000
Amortization expense		418,000				41,000
Equity earnings in Sea Cliff		(336,600	)			0
Net income	$	(1,055,200	)		$	(976,600	)
Statement of Retained Earnings
Retained earnings 1/1	$	(7,550,000	)		$	(3,331,200	)
Net income (above)		(1,055,200	)			(976,600	)
Dividends declared		600,000				150,000
Retained earnings 12/31	$	(8,005,200	)		$	(4,157,800	)
Balance Sheet
Current assets	$	562,000			$	415,000
Investment in Sea Cliff		9,057,800				0
Computer software		380,000				69,000
Patented technology		896,000				112,000
Goodwill		132,000				0
Equipment		1,891,000				4,660,000
Total assets	$	12,918,800			$	5,256,000
Liabilities	$	(2,913,600	)		$	(298,200	)
Common stock		(2,000,000	)			(800,000	)
Retained earnings 12/31		(8,005,200	)			(4,157,800	)
Total liabilities and equity	$	(12,918,800	)		$	(5,256,000	)

Prepare a worksheet to determine the consolidated values to be reported on Persoffs financial statements.