Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2019. 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, 2019, Barstow had the following account balances:

December 31, 2021, adjusted trial balances for the two companies follow:

At year-end, there were no intra-entity receivables or payables.

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, 2021, 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, 2021.

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Book Value Fair Value Current assets $ 160,000 $160,000 Land Buildings (10-year remaining life) Equipment (5-year remaining life) Patents (10-year remaining life). Notes payable (due in 5 years) Common stock 120,000 220,000 160,000 -0- 150,000 200,000 200,000 50,000 (180,000) (200,000) (180,000) (280,000) Retained earnings, 12/31/19.