December 31, 2024, financial statements for each company follow. Parentheses indicate credit balances, Dividends declared were paid in the same period. a. Dotermine the fair value in excess of book value for Persoff's ocquisition date investment in 50 a Cliff. b. Determine Persot's Equity earnings in SedeC efrs balance for the year ended December 31,2024. c. Dotermine Persoffs December 31, 2024, Irwestment in See Ciffs balance. d. Prepare a worksheet to determine the consoildated values to be reported on Persoffs financial statements. 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. On January 3, 2022, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Incorporated, in exchange for $7,956,000 in cash. Persoff elected to exercise control over Sea Ciff as a wholly owned subsidliary with an independent accounting system. Both companies have December 31 fiscal year-ends. At the acquisition date, Sea Clif's stockholders' equity was $2,566,000 including retained earnings of $1,766,000. Persoff pursued the acquisition, in part, to utilize Sea Cilf'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 identiflable assets and Habilities 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. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{8}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{8}{|c|}{ For Year December 31, 2024} \\ \hline \multirow[b]{2}{*}{ Accounts } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Persoff }} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Seacliff }} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow{2}{*}{\begin{tabular}{c} Consolidated \\ Totals \end{tabular}} \\ \hline & & & & & Dobit & Credit & \\ \hline \multicolumn{8}{|l|}{ Income Statement } \\ \hline Revenues & s & (2,840,000) & s & (2,310,000) & & & \\ \hline Cost of goods sold & & 1,408,800 & & 892,800 & & & \\ \hline Depreciation expense & & 305,000 & & 404,000 & & & \\ \hline Amortization expense & & 406,000 & & 37,000 & & & \\ \hline Equity earnings in Sea Clif & & (396,200) & & & & & \\ \hline Net income & $ & (1,116,400) & $ & (976,200) & & & \\ \hline \multicolumn{8}{|c|}{ Statement of Retained Earnings } \\ \hline Retained earnings 1/1 & & (7,530,000) & & (3,306,400) & & & \\ \hline Net income (above) & & (1,116,400) & & (976,200) & & & \\ \hline Dividends declared & & 600,000 & & 150,0007 & & & \\ \hline Retained earnings 12/31 & $ & (8,046,400) & $ & (4,134,600) & & & \\ \hline \multicolumn{8}{|l|}{ Balance Sheet } \\ \hline Current assets & $ & 544,000 & $ & 405,000 & & & \\ \hline Investment in Sea Cliff & & 8,584,600 & & & & & \\ \hline Computer software & & 360,000 & & 63,0007 & & & \\ \hline Patented technology & & 872.000 & & 104,000 & & & \\ \hline Goodw & & 124,000 & & of & & & \\ \hline Equipment & & 1,877,000 & & 4,620,000 & & & \\ \hline Total assets & $ & 12,361,600 & s & 5,192,000 & & & \\ \hline Liabilibes & & (2,315,200) & & (257,400) & & & \\ \hline Common stock & & (2,000,000) & & (800,000) & & & \\ \hline Retained earnings 12/31 & 1 & (8,046,400) & 10 & (4,134,600) & & & \\ \hline Total liabilities and equity & $ & (12,361,600) & $ & (5,192,000) & & & \\ \hline \end{tabular}