Can someone help with this accounting question in advanced accounting?

[arber47]

I have the answer. What I do not understand is how it is the answer. The teacher has provided a template for the homework. If you Google the first line of the question there is a link to McGraw Hill publishing that opens the template. If anyone can explain how to solve for the answer that would be great!

Investment in Barstow: $702,000 is given
Intercompany dividends: $63,000 I understand
Convert to equity method: $7,000 I understand
Intercompany income accrual: $108,000 I understand
Subsidiary stockholders equity: $468,000 HOW?
Unamortized allocations: $175,500 HOW?

Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2009. 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, 2009, Barstow had the following account balances:
Book Value Fair Value
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160,000 $ 160,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 150,000
Buildings (10-year life) . . . . . . . . . . . . . . . . . . . . 220,000 200,000
Equipment (5-year life) . . . . . . . . . . . . . . . . . . . 160,000 200,000
Patents (10-year life) . . . . . . . . . . . . . . . . . . . . . –0– 50,000
Notes payable (5-year life) . . . . . . . . . . . . . . . . . (200,000) (180,000)
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . (180,000) —
Retained earnings, 12/31/09 . . . . . . . . . . . . . . . (280,000) —

December 31, 2011, adjusted trial balances for the two companies follow:

Adams Barstow
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 paid . . . . . . . . . . . . . . . . . . . . . . . . . 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, 1/1/11 . . . . . . . . . . . . . . . . . 1,367,000 340,000
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 940,000 280,000
Investment income . . . . . . . . . . . . . . . . . . . . . . 108,000 –0–
Total credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,785,000 $1,030,000

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. Support your answer with a numerical explanation.
c. Without using a worksheet or consolidation entries, determine the balances to be reported as of December 31, 2011, for this business combination.
d. To verify the figures determined in requirement (c), prepare a consolidation worksheet for Adams Corporation and Barstow, Inc., as of December 31, 2011.