Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2011. Adams paid a total of $603,000 in cash for these shares. The 10 percent noncontrolling interest shares traded on a daily basis at fair value of $67,000 both before and after Adams's acquisition. On December 31, 2011, Barstow had the following account balances:

December 31, 2013, adjusted trial balances for the two companies follow:

a. Prepare schedules for acquisition-date fair-value allocations and amortizations for Adams's investment in Barstow.
b. Determine Adams's method of accounting for its investment in Barstow. Support your answer with a numerical explanation.
c. Without using a worksheet or consolidation entries, determine the balances to be reported as of December 31, 2013, for this business combination.
d. To verify the figures determined in requirement (c), prepare a consolidation worksheet for Adams Corporation and Barstow, Inc., as of December 31, 2013.

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Book Value Fair Value 160,000 160,000 120,000 220,000 160,000 Land Buildings (10-year life) Equipment (5-year life) Patents (10-year life) Notes payable (5-year life) Common stock Retained earnings, 12/31/11 150,000 200,000 200,000 50,000 (180,000) (200,000) (180,000) (280,000) Adams Corporation Barstow, Inc. Debits 610,000 250,000 150,000 250,000 150,000 Current assets. Land Buildings Equipment Investment in Barstow, Inc. Cost of goods sold Depreciation expense Interest expense Dividends paid 380,000 490,000 873,000 1022,0 480,000 100,000 90,000 55,000 15,000 70,000 3,785,000 $1,030,000 40,000 110,000 Total debits Credits Notes payable Common stock Retained earnings, 1/1/13 Revenues Investment income 860,000 230,000 180,000 140.00() 280,000 108,000 - 3,785,000 $1,030,000 510,000 1,367,000 Total credits