Adams co. acquired 90% of the outstanding shares of Barstow, on December 31, 2016. (Adams) paid a total of 603,000 dinars in cash for these shares. Note that the non-controlling percentage is also traded on a daily basis in an active market with a fair value of 67,000 dinars before and after the acquisition. On December 31, 2016. Barstow had the following account balances: Current assets Lands Buildings (10 years) Equipment (5 years) Patent (10 years) Long-term commitments (maturity within five years) Capital common shares Retained earnings 12/31/2016 book value fair value 160000 160000 120000 150000 220000 200000 160000 200000 -0- 50000 200000 180000 180000 280000 Adjusted trial balance as on December 31, 2018 Adams co Barstow co Debit Current assets 610000 250000 Lands 380000 150000 Buildings 490000 250000 Equipment 873000 150000 Investing in Barstow Company 702000 -8 Cost of goods sold 480000 90000 Depreciation expense 100000 55000 interest expense Dividend 40000 15000 110000 70000 Total-debit balances 3785000 1030000 Credit long-term commitments 860000 230000 Capital common shares 510000 180000 Retained earnings 01/01/2018 1367000 340000 Revenues 940000 280000 Investment rights in the net income of the subsidiary Total-credit balances 108000 -O- 3785000 1030000 Required: If you know that at the end of 2018, there were no accruals or amounts payable with the parent company over the subsidiary or vice versa. wanted: 1. Explain the method Adams uses to prove the investment account of his investment in Barstow. Support your answer with a numerical and theoretical explanation showing how to identify this method. 2. Explain the disadvantages of this method. 3. Proof of worksheet entries dated 12/31/2018 by the single-entry method.