On January 3, 2016, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc. in exchange for $6,000,000 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 $2,500,000 including retained earnings of $1,700,000.   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:   Asset Book Value Fair Value RemainingUseful Life Patented technology $ 140,000 $ 2,240,000 7 years Computer software   60,000   1,260,000 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:     Net Income Dividends 2016 $ 900,000 $ 150,000 2017   940,000   150,000 2018   975,000   150,000     December 31, 2018, financial statements for each company appear below. Parentheses indicate credit balances. Dividends declared were paid in the same period.     Persoff   Sea Cliff Income Statement               Revenues $ (2,720,000 )   $ (2,250,000 ) Cost of goods sold   1,350,000       870,000   Depreciation expense   275,000       380,000   Amortization expense   370,000       25,000   Equity earnings in Sea Cliff   (575,000 )     0   Net income $ (1,300,000 )   $ (975,000 ) Statement of Retained Earnings               Retained earnings 1/1 $ (7,470,000 )   $ (3,240,000 ) Net income (above)   (1,300,000 )     (975,000 ) Dividends declared   600,000       150,000   Retained earnings 12/31 $ (8,170,000 )   $ (4,065,000 ) Balance Sheet               Current assets $ 490,000     $ 375,000   Investment in Sea Cliff   7,165,000       0   Computer software   300,000       45,000   Patented technology   800,000       80,000   Goodwill   100,000       0   Equipment   1,835,000       4,500,000   Total assets $ 10,690,000     $ 5,000,000   Liabilities $ (520,000 )   $ (135,000 )   Common stock   (2,000,000 )     (800,000 ) Retained earnings 12/31   (8,170,000 )     (4,065,000 ) Total liabilities and equity $ (10,690,000 )   $ (5,000,000 )   Note: Parentheses indicate a credit balance.   Prepare a worksheet to determine the consolidated values to be reported on Persoff’s financial statements. (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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Consolidated Totals column should be entered with a minus sign.)