Complete entries A$,$S$,$I,D and E

On January $3,2022,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $$6,000,000$ 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 yearends. At the acquisition date, Sea Clifts stockholders' equity was $$2,500,000$

including retained earnings of $$1,700,000.$

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 Clifts bools as follows:

Sea Clift'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:

December $31,2024,$ financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were paid in the same period.

a$.$ Construct Persoffs acquisition$-$date fair$-$value allocation schedule for its investment in Sea Cliff.

b$.$ Show how Persoff determined its Equity earnings in Sea Cliff balance for the year ended December $31,2024.$

c$.$ Show how Persoff determined its December $31,2024,$ Investment in Sea Cliff balance.

d$.$ Prepare a Whiksheet to determine the consolidated values to be reported on Persoff's financial statements.

Complete entries A$,$S$,$I,D and E