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: Current assets Land Buildings (10-year remaining life) Equipment (5-year remaining life) Patents (10-year remaining life) Notes payable (due in 5 years) Common stock Retained earnings, 12/31/19 $ 160,000 120,000 Book Value Fair Value $ 160,000 150,000 220,000 200,000 160,000 200,000 0 50,000 (200,000) (180,000) (180,000) (280,000) December 31, 2021, adjusted trial balances for the two companies follow: Adams Corporation Barstow, Inc. Debits Current assets $ 610,000 $ 250,000 Land 380,000 150,000 Buildings 490,000 250,000 Equipment 873,000 150,000 Investment in Barstow, Inc. 702,000 0 Cost of goods sold 480,000 90,000 Depreciation expense 100,000 55,000 Interest expense 40,000 15,000 Dividends declared Total debits Credits 110,000 70,000 $3,785,000 $1,030,000 Notes payable 860,000 230,000 Common stock 510,000 180,000 Retained earnings, 1/1/21 1,367,000 340,000 Revenues 940,000 280,000 Investment income 108,000 Total credits $3,785,000 $ 1,030,000 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. c.&d. Prepare a consolidation worksheet for Adams Corporation and Barstow, Inc., as of December 31, 2021. Req A and B Req C and D a. Prepare schedules for acquisition-date fair-value allocations and amortizations for Adar b. Determine Adams's method of accounting for its investment in Barstow. a. Annual excess amorizations b. Adams's method of accounting for its investment in Barstow Accounts Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Consolidation Worksheet-Acquisition Method For Year Ending December 31, 2021 Consolidation Entries Adams Corp. Barstow Inc. Debit Credit Noncontrolling Consolidated Interest Totals $ (940,000) $ (280,000) 480,000 100,000 90,000 55,000 40,000 15,000 Investment income (108,000) Separate company net income (428,000) (120,000) Consolidated net income NI to noncontrolling interest NI to Adams Corporation Retained earnings, 1/1/21 Net income (1,367,000) (340,000) (428,000) (120,000) Dividends declared 110,000 70,000 Retained earnings, 12/31/21 (1,685,000) (390,000) Current assets 610,000 250,000. Investment in Barstow 702,000 Land 380,000 150,000 Buildings 490,000 250,000 Equipment 873,000 150,000 Patents Goodwill Total assets 3,055,000 800,000 Notes payable Common stock Retained earnings, 12/31/21 Noncontrolling interest Total liabilities and stockholders' equity (860,000) (230,000) (510,000) (180,000) (1,685,000) (390,000) $ (3,055,000) $ (800,000)