Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2019. Adams pald a total of $603,000 in cash for these shares. The 10 percent noncontrolling Interest shares traded on a daily basis at falr 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 Book Value $ 160,880 120,000 220,000 160,000 Fair value $ 160,000 150,000 200,000 200,000 50,880 (188,888) (200,000) (180,000) (280,000) December 31, 2021, adjusted trial balances for the two companies follow: Adams Corporation Barstow, Inc. $ 250,888 150,880 250,880 150, eee Debits Current assets Land Buildings Equipment Investment in Barstow, Inc. Cost of goods sold Depreciation expense Interest expense Dividends declared Total debits Credits Notes payable Common stock Retained earnings, 1/1/21 Revenues Investment income Total credits $ 610,000 380,000 490,000 873,000 702,888 480,000 188,888 40,888 110,000 $ 3,785,800 90,880 55,000 15,800 70,888 $ 1,030,000 $ $ 860,000 510,000 1,367,800 940,000 108,888 $ 3,785,800 230,000 188,888 340, eee 280,000 $ 1,030,000 At year-end, there were no intra-entity receivables or payables. a. Prepare schedules for acquisition-date falr-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. Accounts Noncontrolling Interest Consolidated Totals S 1,220,000 570,000 161,000 5,000 ADAMS CORPORATION AND BARSTOW, INC. Consolidation Worksheet-Acquisition Method For Year Ending December 31, 2021 Consolidation Entries Adams Barstow Debit Credit Corp. Inc. (940,000) S (280,000) 480,000 90,000 100,000 55,000 6.000 5,000 40,000 15,000 4,000 (108,000) 108,000 (428,000) (120,000) Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Investment income Separate company net income Consolidated net income NI to noncontrolling interest NI to Adams Corporation 59,000 0 0 10,500 425,000 10,500 414,500 13,500 Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 (1,367,000) (428,000) 110,000 (1,685,000) (340,000) (120,000) 70,000 (390,000) 1,353,000 414,500 110,000 1,658,000 63,000 7,000 250,000 860,000 0 765,000 610,000 702,000 380,000 490,000 873,000 Current assets Investment in Barstow Land Buildings Equipment Patents Goodwill Total assets >>> O 150,000 250,000 150,000 63,000 30,000 2.000 32.000 45,000 90,000 18,000 8,000 5,000 > 560,000 724,000 1,047,000 40,000 90.000 321,000 3,055,000 800,000 16,000 4,000 Notes payable Common stock Retained earnings, 12/31/21 Noncontrolling interest (860,000) (510,000) (1,685,000) (230,000) (180,000) (390,000) 180,000 1,078,000 510,000 1,658,000 52.000 19,500 71,500 75,000 S 3,321,000 Total liabilities and stockholders equity IS (3.055.000) $ (800,000) S 594,500 S 934,500