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 Adamss acquisition. On December 31, 2019, Barstow had the following account balances:

	Book Value				Fair Value
Current assets	$	160,000			$	160,000
Land		120,000				150,000
Buildings (10-year remaining life)		220,000				200,000
Equipment (5-year remaining life)		160,000				200,000
Patents (10-year remaining life)		0				50,000
Notes payable (due in 5 years)		(200,000	)			(180,000	)
Common stock		(180,000	)
Retained earnings, 12/31/19		(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			110,000				70,000
Total debits		$	3,785,000			$	1,030,000
Credits
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				0
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 Adamss investment in Barstow.

b. Determine Adamss 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.

Reg A and B ReqC and D 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. a. Annual excess amorizations b. 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. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Simil combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Shov ADAMS CORPORATION AND BARSTOW, INC. Consolidation Worksheet-Acquisition Method For Year Ending December 31, 2021 Consolidation Entries Accounts Debit Credit Noncontrolling Consolidated Interest Totals Adams Corp. Barstow Inc. $ (940,000) $ (280,000) 480,000 90,000 100,000 55,000 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Investment income Separate company net income 15,000 40,000 (108,000) (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) (428,000) 110,000 (1,685,000) (340,000) (120,000) 70,000 (390,000) Dividends declared Retained earnings, 12/31/21 Current assets 250,000 Investment in Barstow Land 610,000 702,000 380,000 490,000 873,000 Buildings Equipment Patents 150,000 250,000 150,000 Goodwill Total assets 3,055,000 800,000 Notes payable Common stock (860,000) (510,000) (1,685,000) (230,000) (180,000) (390,000) Retained earnings, 12/31/21 Noncontrolling interest Total liabilities and stockholders' equity $ (3,055,000) $ (800,000)