Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2009. 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, 2009, Barstow had the following account balances:

December 31, 2011, 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, 2011, 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 31,2011.

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Book Value 160,000 120,000 220,000 160,000 Fair Value 160,000 150,000 Current assets Buildings (10-year life).. Equipment (5-year life) Patents (10-year life) Notes payable (5-year life) Common stock Retained earnin 200,000 50,000 (180,000) (200,000) (180,000) (280,000) gs, 12/31/09 Cor Current assets Investment in Barstow, Inc. Cost of goods sold Depreciation expense Interest expense 1 5 $3.785000 $1,030,000 4 Common stock ined earnings, 1/1/11