On January $1,2019,$ Palmer Company acquired a $100\%$ interest in Stevens Company at a cost of $$1,000,000.$ At the purchase date, Stevens Company's stockholders' equity consisted of the following:

Common stock $$500,000$

Retained earnings $190,000$

An examination of Stevens Company's assets and liabilities revealed the following at the date of acquisition:

Book Value Fair Value

Cash $$90,726$ $$90,726$

Accounts receivable $200,000200,000$

Inventories $160,000210,000$

Equipment $300,000390,000$

Accumulated depreciation$$equipment $(100,000)(130,000)$

Land $190,000290,000$

Bonds payable $(205,556)(150,000)$

Other $54,83054,830$

$$Total $$$$690,000$ $$955,556$

Additional Information$$Date of Acquisition

Stevens Company's equipment had an original life of $15$ years and a remaining useful life of $10$ years. All the inventory was sold in $2019.$ Stevens Company purchased its bonds payable on the open market on January $10,2019,$ for $$150,000$ and recognized a gain of $$55,556.$

Financial statement data for $2021$ are presented here:

Palmer Company

Stevens Company

Sales $$620,000$ $$340,000$

Cost of sales $430,000240,000$

Gross margin $190,000100,000$

Depreciation expense $30,00020,000$

Other expenses $60,00035,000$

Income from operations $100,00045,000$

Dividend income $31,5000$

Net income $$$$131,500$$$45,000$

$1/1$ Retained earnings $$297,600$ $$210,000$

Net income $131,50045,000$

$429,100255,000$

Dividends $(120,000)(35,000)$

$12/31$ Retained earnings $$309,100$$$220,000$

Cash $$201,200$ $$151,000$

Accounts receivable $221,000173,000$

Inventories $100,40081,000$

Investment in Stevens Company $1,000,000$

Equipment $450,000300,000$

Accumulated depreciation$$equipment $(300,000)(140,000)$

Land $360,000290,000$

$$Total assets $$2,032,600$$$855,000$

Accounts payable $$323,500$ $$135,000$

Bonds payable $400,000$

Common stock $1,000,000500,000$

Retained earnings $309,100220,000$

$$Total liabilities and equity $$2,032,600$$$855,000$

Required:

What method is Palmer using to account for its investment in Stevens? How can you tell?

Prepare in general journal form the workpaper entry to allocate and depreciate the difference between book value and the value implied by the purchase price in the December $31,2019,$ consolidated statements workpaper.

Prepare a consolidated financial statements workpaper for the year ended December $31,2021.$

Prepare in good form a schedule or t$$account showing the calculation of the controlling and noncontrolling interest in consolidated net income for the year ended December $31,2021.$

I know there are questions about $90\%$ of ownership but i wondered what it would be like wiht $100\%$ ownership so no nci. thank you