Please help with parts A, B, C, and D.

On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $9,749,000 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 $2,626,500 including retained earnings of $1,826,500.

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:

			Remaining Useful Life
Asset	Book Value	Fair Value
Patented technology	197,500	3,102,500	7 years
Computer software	94,500	4,054,500	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	902,300	150,000
2020	942,300	150,000
2021	977,300	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	(2,950,000.00)		(2,365,000.00)
Cost of goods sold	1,462,700.00		913,700.00
Depreciation expense	332,500.00		426,000.00
Amortization expense	439,000.00		48,000.00
Equity earnings in Sea Cliff	(232,300.00)		-
Net income	(948,100.00)		(977,300.00)
Statement of Retained Earnings
Retained earnings 1/1	(7,585,000.00)		(3,371,100.00)
Net income (above)	(948,100.00)		(977,300.00)
Dividends declared	600,000.00		150,000.00
Retained earnings 12/31	(7,933,100.00)		(4,198,400.00)
Balance Sheet
Current assets	593,500.00		432,500.00
Investment in Sea Cliff	9,885,900.00		-
Computer software	415,000.00		79,500.00
Patented technology	938,000.00		126,000.00
Goodwill	146,000.00		-
Equipment	1,915,500.00		4,730,000.00
Total assets	13,893,900.00		5,368,000.00
Liabilities	(3,960,800.00)		(369,600.00)
Common stock	(2,000,000.00)		(800,000.00)
Retained earnings 12/31	(7,933,100.00)		(4,198,400.00)
Total liabilities and equity	(13,893,900.00)		(5,368,000.00)

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 Persoffs financial statements.