On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $7,793,000 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 $2,560,500 including retained earnings of $1,760,500. 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 $ 167,500 $ 2,652,500 7 years Computer software $ 76,500 $ 2,596,500 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 2019 $ 901,100 $ 150,000 2020 941,100 150,000 2021 976,100 150,000 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 $ (2,830,000 ) $ (2,305,000 ) Cost of goods sold 1,403,900 890,900 Depreciation expense 302,500 402,000 Amortization expense 403,000 36,000 Equity earnings in Sea Cliff (411,100 ) 0 Net income $ (1,131,700 ) $ (976,100 ) Statement of Retained Earnings Retained earnings 1/1 $ (7,525,000 ) $ (3,302,700 ) Net income (above) (1,131,700 ) (976,100 ) Dividends declared 600,000 150,000 Retained earnings 12/31 $ (8,056,700 ) $ (4,128,800 ) Balance Sheet Current assets $ 539,500 $ 402,500 Investment in Sea Cliff 8,466,300 0 Computer software 355,000 61,500 Patented technology 866,000 102,000 Goodwill 122,000 0 Equipment 1,873,500 4,610,000 Total assets $ 12,222,300 $ 5,176,000 Liabilities $ (2,165,600 ) $ (247,200 ) Common stock (2,000,000 ) (800,000 ) Retained earnings 12/31 (8,056,700 ) (4,128,800 ) Total liabilities and equity $ (12,222,300 ) $ (5,176,000 ) Note: Parentheses indicate a credit balance. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff. Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021. Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. Prepare a worksheet to determine the consolidated values to be reported on Persoffs financial statements.