Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $732,300 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 $604,900. Credit balances are indicated by parentheses.

Adams Clay

Current assets $326,000 $290,000

Investment in Clay 732,300 0

Equipment 781,900 526,000

Liabilities (280,000) (170,000)

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

Retained earnings, 1/1/17(1,210,200) (496,000)

In 2017, Clay earns a net income of $62,700 and declaresand pays a $5,000 cash dividend. In 2017, Adams reports netincome from its own operations (exclusive of any income from Clay) of $193,000 and declares no dividends. At the end of 2018, selected account balances for the two companies are as follows:

Adams Clay

Revenues $(452,000) $(272,000)

Expenses 327,700 204,000

Investment income Not given 0

Retained earnings, 1/1/18 Not given (553,700)

Dividends declared 0 8,000

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

Current assets 651,000 342,800

Investment in Clay Not given 0

Equipment 701,900 574,900

Liabilities (208,900) (130,700)

What are the December 31, 2018, Investment Income and Investment in Clay account balances assuming Adams uses the:

• Equity method.
• Initial value method.