Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $631,400 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 $495,600. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/20 Adams Clay $ 408,000 $ 283,000 631,400 0 685,600 438,000 (278,000) (167,000) (350,000) (150,000) (1,097,000) (404,000) In 2020, Clay earns a net income of $69,600 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 $196,000 and declares no dividends. At the end of 2021, selected account balances for the two companies are as follows: Revenues Expenses Investment income Retained earnings, 1/1/21 Dividends declared Common stock Current assets Investment in Clay Equipment Liabilities Adams $ (542,000) 392,950 Clay $(424,000) 318,000 Not given 0 Not given (468,600) 0 8,000 (350,000) (150,000) 778,000 334,900 Not given 0 599,600 480,900 (203,600) (110,600) a. What are the December 31, 2021, Investment Income and Investment in Clay account balances assuming Adams uses the: Equity method. Initial value method. 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 Earnings account balance is required if Adams accounts for its investment in Clay using the initial value method? f. Prepare the worksheet entry to eliminate Clay's stockholders' equity. g. What is consolidated net income for 2021? Req A Req B to D Req E and F Req G What are the December 31, 2021, Investment Income and Investment in Clay account ba Investment Income Investment in Clay Equity method Initial value method Reg A Req B to D Req A Req B to D Req E and F Req G b. What is the amount of Consolidated Expenses in its December 31, 2021, consolidated i following methods? c. What is the amount of Consolidated Equipment in its December 31, 2021, consolidated following methods? d. What is Adams's January 1, 2021, Retained Earnings account balance assuming Adams using the: Equity value method. Initial value method. Equity method Initial value method Partial equity method b. Consolidated c. Consolidated Expense Equipment d. Retained Earnings Req A Req B to D Req E and F Req G e. What worksheet adjustment to Adams's January 1, 2021, Retained Earnings account b. investment in Clay using the initial value method? f. Prepare the worksheet entry to eliminate Clay's stockholders' equity. (If no entry is req entry required" in the first account field.) view transaction list Consolidation Worksheet Entries < 1 2 Record the adjustment to retained earnings if Adams accounts for its investment in Clay under the initial value method. Note: Enter debits before credits. Date January 01, 2021 Accounts Debit Credit Req A Req B to D Req E and F Req G e. What worksheet adjustment to Adams's January 1, 2021, Retained Earnings account b. investment in Clay using the initial value method? f. Prepare the worksheet entry to eliminate Clay's stockholders' equity. (If no entry is req entry required" in the first account field.) view transaction list Consolidation Worksheet Entries < 1 2 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date December 31, 2021 Accounts Debit Credit Record entry Clear entry view consolidation entr Req A Req B to D Req E and F Req G What is consolidated net income for 2021? Consolidated net income