On January $3,2022,$ Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for $$7,304,000$ in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December $31$ fiscal year$-$ends. At the acquisition date, Sea Cliff$$s stockholders$$ equity was $$2,544,000$ including retained earnings of $$1,744,000.$

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:

AssetBook ValueFair ValueRemaining Useful LifePatented technology$ $160,000$$ $2,540,0007$ yearsComputer software$ $72,000$$ $2,232,00012$ 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:

YearNet IncomeDividends$2022$$ $900,800$$ $150,0002023940,800150,0002024975,800150,000$

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

ItemsPersoffSea CliffIncome Statement$$Revenues$ $(2,800,000)$$ $(2,290,000)$Cost of goods sold$1,389,200885,200$Depreciation expense$295,000396,000$Amortization expense$394,00033,000$Equity earnings in Sea Cliff$(455,800)0$Net income$ $(1,177,600)$$ $(975,800)$Statement of Retained Earnings$$Retained earnings $1/1$$ $(7,510,000)$$ $(3,285,600)$Net income $($above$)(1,177,600)(975,800)$Dividends declared$600,000150,000$Retained earnings $12/31$$ $(8,087,600)$$ $(4,111,400)$Balance Sheet$$Current assets$ $526,000$$ $395,000$Investment in Sea Cliff$8,111,4000$Computer software$340,00057,000$Patented technology$848,00096,000$Goodwill$116,0000$Equipment$1,863,0004,580,000$Total assets$ $11,804,400$$ $5,128,000$Liabilities$ $(1,716,800)$$ $(216,600)$Common stock$(2,000,000)(800,000)$Retained earnings $12/31(8,087,600)(4,111,400)$Total liabilities and equity$ $(11,804,400)$$ $(5,128,000)$

Required:

Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff.

Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December $31,2024.$

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

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