On January $3,2019,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $\backslash (\backslash$$ $8,608,000\backslash )$ in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December $31$ fiscal year$-$ends. At the acquisition date, Sea Cliff's stockholders' equity was $\backslash$$$2,588,000$ including retained earnings of $\backslash (\backslash$$ $1,788,000\backslash ).$

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:

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:

December $31,2021,$ financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. $\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline & Persoff & Sea Cliff $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Income Statement$\}\backslash \backslash$

$\backslash$hline Revenues & $\backslash$$ $(2,880,000)$ & $\backslash$$ $\backslash ((2,330,000)\backslash )\backslash \backslash$

$\backslash$hline Cost of goods sold & $1,428,400$ & $900,400\backslash \backslash$

$\backslash$hline Depreciation expense & $315,000$ & $412,000\backslash \backslash$

$\backslash$hline Amortization expense & $418,000$ & $41,000\backslash \backslash$

$\backslash$hline Equity earnings in Sea Cliff & $\backslash ((336,600)\backslash )$ & $0\backslash \backslash$

$\backslash$hline Net income & $\backslash$$ $(1,055,200)$ & $\backslash$$ $\backslash ((976,600)\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Statement of Retained Earnings$\}\backslash \backslash$

$\backslash$hline Retained earnings $1/1$ & $\backslash$$ $(7,550,000)$ & $\backslash$$$(3,331,200)\backslash \backslash$

$\backslash$hline Net income $($above$)$ & $\backslash ((1,055,200)\backslash )$ & $\backslash ((976,600)\backslash )\backslash \backslash$

$\backslash$hline Dividends declared & $600,000$ & $150,000\backslash \backslash$

$\backslash$hline Retained earnings $12/31$ & $\backslash$$ $\backslash ((8,005,200)\backslash )$ & $\backslash$$$(4,157,800)\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Balance Sheet$\}\backslash \backslash$

$\backslash$hline Current assets & $\backslash$$ $562,000$ & $\backslash$$ $415,000\backslash \backslash$

$\backslash$hline Investment in Sea Cliff & $9,057,800$ & $0\backslash \backslash$

$\backslash$hline Computer software & $380,000$ & $69,000\backslash \backslash$

$\backslash$hline Patented technology & $896,000$ & $112,000\backslash \backslash$

$\backslash$hline Goodwill & $132,000$ & $0\backslash \backslash$

$\backslash$hline Equipment & $1,891,000$ & $4,660,000\backslash \backslash$

$\backslash$hline Total assets & $\backslash$$ $12,918,800$ & $\backslash$$ $5,256,000\backslash \backslash$

$\backslash$hline Liabilities & $\backslash$$ $(2,913,600)$ & $\backslash$$ $\backslash ((298,200)\backslash )\backslash \backslash$

$\backslash$hline Common stock & $\backslash ((2,000,000)\backslash )$ & $\backslash ((800,000)\backslash )\backslash \backslash$

$\backslash$hline Retained earnings $12/31$ & $\backslash ((8,005,200)\backslash )$ & $\backslash ((4,157,800)\backslash )\backslash \backslash$

$\backslash$hline Total liabilities and equity & $\backslash$$$(12,918,800)$ & $\backslash$$$(5,256,000)\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

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 Persoff's financial statements. Complete this question by entering your answers in the tabs below.

Required $\backslash ($ A $\backslash )$

Required B

Required C

Required D

Determine Persoff's December $31,2021,$ Investment in Sea Cliff's balance.