On January $3,2022,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for $$7,793,000$ in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December $31$ fiscal year$-$ends. At the acquisition date, Sea Cliff's stockholders' equity was $$2,560,500$ including retained earnings of $$1,760,500.$

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:

$\backslash$table$[[$Asset$,$Book Value,Fair Value,$\backslash$table$[[$Remaining$],[$Useful Life$]]],[$Patented technology,$$167,500,$$$2,652,500,7$ years$],[$Computer software,$$76,500,$$$2,596,500,12$ years$]]$

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:

$\backslash$table$[[$Year$,$Net Income,Dividends$],[2022,$$$901,100,$$$150,000],[2023,941,100,150,000],[2024,976,100,150,000]]$

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

$\backslash$table$[[$Items$,$Persoff,Sea Cliff$],[$Income Statement$],[$Revenues$,,$$$(2,830,000),,(2,305,000)],[$Cost of goods sold,,$1,403,900,,890,900],[$Depreciation expense,,$302,500,,402,000],[$Amortization expense,,$403,000,,36,000],[$Equity earnings in Sea Cliff,,$(411,100),,0],[$Net income,,$$(1,131,700),,$$ $(976,100)],[$Statement of Retained Earnings$],[$Retained earnings $1/1,,$$$(7,525,000),$$$,(3,302,700)],[$Net income $($above$),,(1,131,700),,(976,100)],[$Dividends declared,,$600,000,,150,000],[$Retained earnings $12/31,,$$$(8,056,700),$$$,(4,128,800)],[$Balance Sheet,,,,$],[$Current assets,,$ $539,500,,$$ $402,500],[$Investment in Sea Cliff,,$8,466,300,,0],[$Computer software,,$355,000,,61,500],[$Patented technology,,$866,000,,102,000],[$Goodwill$,,122,000,,0],[$Equipment$,,1,873,500,,4,610,000],[$Total assets,,$$12,222,300,,$$ $5,176,000],[$Liabilities$,,$$ $(2,165,600),,$$ $(247,200)],[$Common stock,,$(2,000,000),,(800,000)],[$Retained earnings $12/31,,(8,056,700),,(4,128,800)],[$Total liabilities and equity,,$(12,222,300),$$$,(5,176,000)]]$

Required:

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.