on January 3, 2019. Persoft Corporation accuind all of the outstanding voting stock of Sea Clirt, Inc., in exchange for $6,978.000 in cash. Pusof elected to exercise control over Sea Cras a wholly owned subsidiery with an Independent accounting system. Both companies have December 31 fiscal years. At the acquestion date. Sea Cart's stockholdersequry was $2.53,000 including retained earnings of $1733,000 Persoft pursued the acquisition, in part, to utilize Sea Cliff's technology and computer software. These items had alr values that differed from their values on Sea Cliff's books as follows: Rebolning Asset Book Value Fair Value Useful Life Patented technology $155,000 $2,465,eee 7 years Computer software $ 69, Bee $1,989,000 12 years Sea Cliff's remaining enable assets and liabilities had acquisition date book values that closely approdnated for values. Since acquisition, no assets have been impaired. During the next three years. Sea Cliff reported the following Income and dividends: Net Income 2019 $900,600 2020 940,600 2021 975,600 Dividends $150,000 150,000 150,000 December 31, 2021, financial statements for each company follow. Parentheses indicate creat balances, Dividends declared were paid in the same period Persoft Sea Cliff $ 12,780,000) ${2,280,000) 1,379,400 881,400 290,000 392.000 388,00 31,eee (485,500) S (1,288,200)975,600 Income Statement Revenges Cost of goods sold Depreciation expense Amortization expense Equity earnings in Sea Cliff Net Income Statement of Retained Earnings Retained earnings 1/1 Net Income (above Dividends declared Retained earnings 12/31 Balance Sheet Current assets Investment in Sea Clift Computer software Patented technology Goodwill Equipent Total assets Liabilities Connon stock Retained earnings 12/31 Total liabilities and equity 5 17.500,000) $13,274,200) (1,208,208) X975,680) 680.000 150.000 S (8,188, 200) 544,099,800 $ 390,000 54,000 92.000 5 517,00 7,874,800 330, Bee 836,000 112,000 1,856,000 $ 11,525,800 5 (1,417,602 (2.000,00 18.108 2007 ${11,525,890) 4.560,000 3 5,096,000 5296, 2007 800,000 14.091,800 $15.096,0801 Note Prontheses indicate a croce balance Determine the tar vincess of book wie Pescuito cater Beach b. Determine Peso coverings in Sea Coronahe year bed Ocea3 2021 Determine personer of 20 mementinence Pre workinetotine the concedides to be reported operacers On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $6,978,000 in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companles have December 31 fiscal year-ends. At the acquisition date, Sea Cliff's stockholders' equity was $2,533,000 including retained earnings of $1733,000. 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: Asset Patented technology Computer software Book Value Fair Value $ 155,888 $ 2,465,888 $ 69,888 $ 1,989, see Remaining Useful Life 7 years 12 years Sea Cliff's 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 $988,688 $ 150,000 2020 940,600 150,000 2821 975, 680 158,888 December 31, 2021, financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Sea Cliff Persaff $ (2,780,000) 1,379,480 290,000 388,000 (485,680) 5 (1,208,280) S(2,288,000) 881,400 392,880 31,888 @ 5 (975, 680) Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity earnings in Sea Cliff Net income Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 Balance Sheet Current assets Investment in Sea Clift Computer software Patented technology Goodwill Equipment Total assets Liabilities Common stock Retained earnings 12/31 Total Liabilities and equity $ (7,500,000) (1,208,200) 680,000 $ (8,108,200) S(3,274,200) (975,680) 150,000 $14,099,800) s 390.000 5 517,000 7,874,800 338,888 836,000 112,800 1,856,880 $ 11,525,888 $ 61,417,600) $2,000,000) 18.188.280) 5111,525,880) 54,000 92,000 @ 4,560, 800 $ 5,096,000 S: (196, 200) (B88,000) (4,099,808) ${5, 296, 800) Note: Parentheses indicate a credit balance. a. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Clift b. Determine Persoft'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 on January 3, 2019. Persoft Corporation accuind all of the outstanding voting stock of Sea Clirt, Inc., in exchange for $6,978.000 in cash. Pusof elected to exercise control over Sea Cras a wholly owned subsidiery with an Independent accounting system. Both companies have December 31 fiscal years. At the acquestion date. Sea Cart's stockholdersequry was $2.53,000 including retained earnings of $1733,000 Persoft pursued the acquisition, in part, to utilize Sea Cliff's technology and computer software. These items had alr values that differed from their values on Sea Cliff's books as follows: Rebolning Asset Book Value Fair Value Useful Life Patented technology $155,000 $2,465,eee 7 years Computer software $ 69, Bee $1,989,000 12 years Sea Cliff's remaining enable assets and liabilities had acquisition date book values that closely approdnated for values. Since acquisition, no assets have been impaired. During the next three years. Sea Cliff reported the following Income and dividends: Net Income 2019 $900,600 2020 940,600 2021 975,600 Dividends $150,000 150,000 150,000 December 31, 2021, financial statements for each company follow. Parentheses indicate creat balances, Dividends declared were paid in the same period Persoft Sea Cliff $ 12,780,000) ${2,280,000) 1,379,400 881,400 290,000 392.000 388,00 31,eee (485,500) S (1,288,200)975,600 Income Statement Revenges Cost of goods sold Depreciation expense Amortization expense Equity earnings in Sea Cliff Net Income Statement of Retained Earnings Retained earnings 1/1 Net Income (above Dividends declared Retained earnings 12/31 Balance Sheet Current assets Investment in Sea Clift Computer software Patented technology Goodwill Equipent Total assets Liabilities Connon stock Retained earnings 12/31 Total liabilities and equity 5 17.500,000) $13,274,200) (1,208,208) X975,680) 680.000 150.000 S (8,188, 200) 544,099,800 $ 390,000 54,000 92.000 5 517,00 7,874,800 330, Bee 836,000 112,000 1,856,000 $ 11,525,800 5 (1,417,602 (2.000,00 18.108 2007 ${11,525,890) 4.560,000 3 5,096,000 5296, 2007 800,000 14.091,800 $15.096,0801 Note Prontheses indicate a croce balance Determine the tar vincess of book wie Pescuito cater Beach b. Determine Peso coverings in Sea Coronahe year bed Ocea3 2021 Determine personer of 20 mementinence Pre workinetotine the concedides to be reported operacers On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $6,978,000 in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companles have December 31 fiscal year-ends. At the acquisition date, Sea Cliff's stockholders' equity was $2,533,000 including retained earnings of $1733,000. 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: Asset Patented technology Computer software Book Value Fair Value $ 155,888 $ 2,465,888 $ 69,888 $ 1,989, see Remaining Useful Life 7 years 12 years Sea Cliff's 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 $988,688 $ 150,000 2020 940,600 150,000 2821 975, 680 158,888 December 31, 2021, financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Sea Cliff Persaff $ (2,780,000) 1,379,480 290,000 388,000 (485,680) 5 (1,208,280) S(2,288,000) 881,400 392,880 31,888 @ 5 (975, 680) Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity earnings in Sea Cliff Net income Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 Balance Sheet Current assets Investment in Sea Clift Computer software Patented technology Goodwill Equipment Total assets Liabilities Common stock Retained earnings 12/31 Total Liabilities and equity $ (7,500,000) (1,208,200) 680,000 $ (8,108,200) S(3,274,200) (975,680) 150,000 $14,099,800) s 390.000 5 517,000 7,874,800 338,888 836,000 112,800 1,856,880 $ 11,525,888 $ 61,417,600) $2,000,000) 18.188.280) 5111,525,880) 54,000 92,000 @ 4,560, 800 $ 5,096,000 S: (196, 200) (B88,000) (4,099,808) ${5, 296, 800) Note: Parentheses indicate a credit balance. a. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Clift b. Determine Persoft'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