Adams, Inc., acquires Clay Corporation on January $1,2020,$ in exchange for $$674,800$ cash. Immediately after the acquisition, the two companies have the following account balances. Clay$$s equipment $($with a five$-$year remaining life$)$ is actually worth $$638,700.$ Credit balances are indicated by parentheses.

Adams Clay

Current assets $ $388,000$ $ $241,000$

Investment in Clay $674,8000$

Equipment $884,700570,000$

Liabilities $(200,000)(216,000)$

Common stock $(350,000)(150,000)$

Retained earnings, $1/1/20(1,397,500)(445,000)$

In $2020,$ Clay earns a net income of $$53,400$ and declares and pays a $$5,000$ cash dividend. In $2020,$ Adams reports net income from its own operations $($exclusive of any income from Clay$)$ of $$145,000$ and declares no dividends. At the end of $2021,$ selected account balances for the two companies are as follows:

Adams Clay

Revenues $ $(506,000)$ $ $(272,000)$

Expenses $366,850204,000$

Investment income Not given $0$

Retained earnings, $1/1/21$ Not given $(493,400)$

Dividends declared $08,000$

Common stock $(350,000)(150,000)$

Current assets $669,000311,500$

Investment in Clay Not given $0$

Equipment $760,700626,100$

Liabilities $(131,000)(175,500)$

What are the December $31,2021,$ Investment Income and Investment in Clay account balances assuming Adams uses the:

Equity method.

Initial value method.

What is the amount of Consolidated Expenses in its December $31,2021,$ consolidated income statement under each of the following methods?

What is the amount of Consolidated Equipment in its December $31,2021,$ consolidated balance sheet under each of the following methods?

What is Adams$$s January $1,2021,$ Retained Earnings account balance assuming Adams accounts for its investment in Clay using the:

Equity value method.

Initial value method.

What worksheet adjustment to Adams$$s January $1,2021,$ Retained Earnings account balance is required if Adams accounts for its investment in Clay using the initial value method?

Prepare the worksheet entry to eliminate Clay$$s stockholders$$ equity.

What is consolidated net income for $2021?$