On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $8.445,000 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 $2,582,500 Including retained earnings of $1,782,500. 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 Cliff's books as follows: Remaining Book Value Fair Value Useful Life Patented technology $ 177,500 $ 2,802,500 7 years Computer software $ 82,500 $ 3,982, see 12 years Asset Sea Cliff's remaining Identifiable assets and liabilities had acquisition-date book values that closely approximated fair values. Since acquisition, no assets have been Impalred. During the next three years, Sea Cliff reported the following Income and dividends: 2019 2020 2021 Net Income $ 901,5ee 941,500 976,500 Dividends $ 150,000 150, eee 150,00 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 $ (2,870,eee) $(2,325,000) Cost of goods sold 1,423,500 898,500 Depreciation expense 312,500 419, eee Amortization expense 415,800 40,000 Equity earnings in Sea Cliff (351,5ee) @ Net income $ (1,878,500) $ (976,500) Statement of Retained Earnings Retained earnings 1/1 $ (7,545,000) $(3, 325,580) Net income (above) (1,070,500) (976,500) Dividends declared 600,000 150,000 Retained earnings 12/31 $ (8,815,500) $(4,152,680) Balance Sheet Current assets $ 557,500 $ 412,588 Investment in Sea Cliff 8,939,500 Computer software 375, eee 67,500 Patented technology 890,00 119,00 Goodwill 130,000 @ Equipment 1,887,500 4,650,000 Total assets $ 12,779,500 $ 5,240,000 Liabilities $ (2,764,890) $ (288, 289) Common stock (2,000,000) (800,000) Retained earnings 12/31 (8,815,500) (4,152, eee) Total liabilities and equity $(12,779,500) $(5,240,000) 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