On January $3,2022.$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for

$$7,630,000$ 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 $$2,555,000$

including retained earnings of $$1,755,000.$

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:

Sea Cliff's remaining identifiable assets and llabilities had acquisition$-$date book values that closely approximated fair values. Since

acquisition, no assets have been impalred. 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

pald in the same perlod.

Sea Cliff's remaining identifiable assets and liabilitles 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 $31,2024,$ financlal statements for each company follow. Parentheses indicate credit balances. Dividends declared were

pald in the same perlod.

Can you please also answer theses four questions

a$.$ Determine the falr 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 $31,2024.$

c$.$ Determine Persoff's December $31,2024,$ Investment in Sea Cliff's balance.

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

Complete this question by entering your answers in the tabs below.

Sea Cliff's remaining identifiable assets and liabilitles 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

pald in the same perlod.