On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc, in exchange for $7,467,000 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 $2,549,500 including retained earnings of $1,749,500. 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 Clif's books as follows: Sea Cliff's remaining identifable 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, 2021, financial statements for each company follow. Parentheses indicate credit balances. Dividends deciared were paid in the same period Note: Parentheses indicate a credit balance. a. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff. b. Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021 . c. Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. d. Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statements Complete this question by entering your answers in the tabs below. Prepare a worksheet to determine the consolldated values to be reported on Persoff's financial statements. (for accounts wherc multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statements. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) b ? a. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff. b. Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021 . c. Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. d. Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statements. Answer is not complete. Complete this question by entering your answers in the tabs below. Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. a. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff. b. Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021. c. Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. d. Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statem Answer. is not complete. Complete this question by entering your answers in the tabs below. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff
