On January 1, 2022, ADP Corporation issued shares of its common stock to acquire all of the outstanding common stock of Zhang Incorporated. Zhang's book value was only $140,000 at the time, but ADP issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. ADP was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on Zhang's records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill. Following are the individual financial records for these two companies (ADP used Equity Method for its internal records) for the vear ended December 31.2025. Required: 1. If ADP had used PARTIAL EQUITY METHOD, what would the investment account balance be as of 12/31/2025 ? 2. If ADP had used INITIAL VALUE METHOD, what would the investment account balance be as of 12/31/2025 ? - 3. What are the consolidated totals as of December 31,2025 for each of the following accounts? a. Building b. Equipment c. Investment d. Goodwill On January 1, 2022, ADP Corporation issued shares of its common stock to acquire all of the outstanding common stock of Zhang Incorporated. Zhang's book value was only $140,000 at the time, but ADP issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. ADP was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on Zhang's records by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill. Following are the individual financial records for these two companies (ADP used Equity Method for its internal records) for the vear ended December 31.2025. Required: 1. If ADP had used PARTIAL EQUITY METHOD, what would the investment account balance be as of 12/31/2025 ? 2. If ADP had used INITIAL VALUE METHOD, what would the investment account balance be as of 12/31/2025 ? - 3. What are the consolidated totals as of December 31,2025 for each of the following accounts? a. Building b. Equipment c. Investment d. Goodwill