On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $8,934,000 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 $2,599,000 including retained earnings of $1,799,000.

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:

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:

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

Note: Parentheses indicate a credit balance.

Please help me figure out what's incorrect.

Remaining Asset Book Value Fair value Useful Life Patented $185,000 $2,915,000 7 years technology Computer software $ 87,000 $3,447,000 12 years Net Income 2019 $901,800 2020 941,800 2021 976,800 Dividends $150,000 150,000 150,000 Persoft Sea Clift Income Statement Revenues $ (2,900,000) $12,340,000) Cost of goods sold 1,438,200 904,200 Depreciation expense 320,000 416,000 Amortization expense 424,000 43,000 Equity earnings in Sea (306, 800) 0 Clift Net income $ (1,024, 600) $ 1976,800) Statement of Retained Earnings Retained earnings 1/1 $ (7,560,000) $(3, 342,600) Net income (above) (1,024, 600) (976, 800) Dividends declared 600,000 150,000 Retained earnings 12/31 $ 17,984,600) $14,169,400) Balance Sheet Current assets $ 571,000 $ 420,000 Investment in Sea Cliff 9,294,400 0 Computer software 390,000 72,000 Patented technology 908,000 116,000 Goodwill 136,000 Equipment 1,898,000 4,680,000 Total assets $ 13, 197,400 $ 5,288,000 Liabilities $ (3,212,800) $ (318,600) Common stock (2,000,000) (800,000) Retained earnings 12/31 (2,984,600) (4,169,400) Total liabilities and equity $(13, 197,400) $(5,288,000) 0 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required Required Required A B D Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021. Amounts Revenues x S 976,800 Amortization expense (670.000/ Equity earnings in Sea Cliff S 306,800 Required Required Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required Required Required B D Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. Amounts Fair value at 1/1/19 $ 8,934,000 Post-acquisition earnings net of 2,820,400X amortization Sea Cliff dividends since acquisition (450,000 Fair value in excess of book value X (2.010,000 X Investment in Sea Cliff $ 9,294,400