Adams, inc, acquires Clay Corporation on January 1, 2020, in exchange for $574.400 cash. Immediately after the acquisition, the two companles have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $505.400. Credit balances are indicated by parentheses In 2020, Clay earns a net income of $71,100 and declares and pays a $5,000 cash dividend in 2020, Adams reports net income from Its own operations fexclusive of any income from Clay) of $179,000 and declares no dividends. At the end of 2021, selected account balances for the two companles are as follows: a. What are the December 31,2021 , Investment income and investment in Cloy account balances assuming Adams uses the: - Equity method. - Initial value method. b. What is the amount of Consolidated Expenses in its December 31, 2021, consolldated income statement under each of the following methods? c. What is the amount of Consolidated Equipment in its December 31.2021, consolidated palance sheet under each of the following methods? d. 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. e. 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? 1. Prepare the worksheet entry to eliminate Clay's stockholders' equity. 9. What is consolidated net income for 2021 ? Complete this question by entering your answers in the tabs What are the December 31,2021 , Investment Income and Investm b. What is the amount of Consolidated Expenses in its December 31,2021, consolidated income statement under each of the following methods? c. What is the amount of Consolidated Equipment in its December 31, 2021, consolidated balance sheet under each of the following methods? d. 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. e. What worksheet adjustment to Adams's January 1, 2021. Retained Farmings account balance is required if Actams accounts for its investmeat in Clay using the initat value method? f. Prepare the worksheet entry to eliminate Clay's stockholder:' mquity. (if no entry is required for tranisaction/ovent, solect "No fournal entry required" in the first account field.) Consolidation Worksheet Entries Record the adjustment to retained earmings if Adams accounts for its investment in Clay under the initial value mettiod. Note: Fnter debits before oredits. Complete this question by entering your answers in the tabs below. What is consolidated net income for 2021
