Consolidation After Several Years Using Cost Method

On January $1,2016,$ Adams Corporation acquired all of the stock of Baker Company. The fair value of Adams' shares used in the exchange was $$37,500,000.$ At the time of acquisition, the

book value of Baker's shareholders' equity was $$5,000,000,$ and the book value of Baker's building $(25-$year life$)$ exceeded its fair value by $$1,000,000.$ From the date of acquisition to

December $31,2021,$ Baker had cumulative net income of $$1,300,000.$ For $2022,$ Baker reported net income of $$300,000.$ Adams uses the cost method to account for its investment in

Baker. There is no goodwill impairment loss for the period $2016$ through $2021,$ but there is impairment loss of $$100,000$ in $2022.$ Baker declared no dividends during the period $2016-$

Required

Prepare the working paper eliminating entries necessary to consolidate the financial statements of Adams and Baker at December $31,2022.$

Enter answers using all zeros $($do not abbreviate answers to millions or thousands$).$