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

$$8,608,000$ 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 Cliff's stockholders' equity was $$2,588,000$

including retained earnings of $$1,788,000.$

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 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$.$ 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 $31,2024.$

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 financial statements.

Complete this question by entering your answers in the tabs below.Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff.

Fair value in excess of book valueDetermine Persoff's Equity earnings in Sea Cliff's balance for the year ended December $31,2024.$

$1$Determine Persoff's December $31,2024,$ Investment in Sea Cliff's balance.Complete this question by entering your answers in the tabs below.

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

Note: For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.

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$\backslash$table$[[$PERSOFF CORPORATION AND CONSOLIDATED SUBSIDIARY$],[$Consolidation Worksheet$],[$For Year December $31,2024],[$Accounts$,$Persoff,Sea Cliff,Consolidation Entries,$\backslash$table$[[$Consolidated$],[$Totals$]]],[,,$Credit$],[$Income Statement$],[$Revenues$,$$$,(2,880,000),$$$,(2,330,000),,,,],[$Cost of goods sold,,$1,428,400,,900,400,,,,],[$Depreciation expense,,$315,000,,412,000,,,,],[$Amortization expense,,$418,000,,41,000,,,,],[$Equity earnings in Sea Cliff,,$(336,600),,,,,,],[$Net income,$$,(1,055,200),$$$,(976,600),,,,],[$Statement of Retained Earnings$],[$Retained earnings $1/1,,(7,550,000),,(3,331,200),,,,],[$Net income $($above$),,(1,055,200),,(976,600),,,,],[$Dividends declared,,$600,000,,150,000,,,,],[$Retained earnings $12/31,$$$,(8,005,200),$$$,(4,157,800),,,,],[$Balance Sheet$],[$Current assets,$$,562,000,$$$,415,000,,,,],[$Investment in Sea Cliff,,$9,057,800,,,,,,],[$Computer software,,$380,000,,69,000,,,,],[$Patented technology,,$896,000,,112,000,,,,],[$Goodwill$,,132,000,,0,,,,],[$Equipment$,,1,891,000,,4,660,000,,,,],[$Total assets,$$,12,918,800,$$$,5,256,000,,,,],[$Liabilities$,,(2,913,600),,(298,200),,,,],[$Common stock,,$(2,000,000),,(800,000),,,,],[$Retained earnings $12/31,,(8,005,200),,(4,157,800),,,,],[$Total liabilities and equity,$$,(12,918,800),$$$,(5,256,000),$$$,0,$$$,]]$