On January $3,2022,$ Persoff Corporation acqulred all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for $$6,489,000$ In cash. Persoff elected to exerclse control over Sea Cliff as a wholly owned subsidlary with an Independent accounting system. Both companles have December $31$ flscal year$-$ends. At the acquisition date, Sea Cliff's stockholders' equity was $$2,516,500$ Including retained earnings of $$1,716,500.$

Persoff pursued the acqulsition, In part, to utilize Sea Cilf's technology and computer software. These Items had falr 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,$$147,500,$$$2,352,500,7$ years$],[$Computer software,$$64,500,$$$1,624,500,12$ years$]]$

Sea Cllff$\text{'}$s remaining Identlflable assets and liablilties had acquisition$-$date book values that closely approximated falr values. Since acqulsition, no assets have been Impalred. During the next three years, Sea Cliff reported the following income and dividends:

$\backslash$table$[[$Year$,$Net Income,Dividends$],[2022,$$$960,300,$$$150,000$